Wheels Up Takes flyExclusive Dispute to North Carolina Court
Wheels Up has moved its long-running legal dispute with flyExclusive to a new venue, refiling its lawsuit in the North Carolina Superior Court on December 31. The action marks the third jurisdiction to consider the case since Wheels Up first initiated legal proceedings in July 2023, underscoring the procedural complexity surrounding the dispute.
The refiling comes roughly one month after the Supreme Court of the State of New York dismissed the case on jurisdictional grounds, ruling that New York courts did not have the authority to hear the matter. Wheels Up is now seeking to recover at least USD 33.6 million, plus interest, as it presses its claims against the North Carolina-based charter operator.
At the heart of the dispute is USD 37.5 million in deposits that Wheels Up paid to flyExclusive under a guaranteed revenue programme. The agreement was designed to run through March 2024 and was intended to ensure aircraft availability and operational continuity during periods of high demand. Wheels Up alleges that flyExclusive wrongfully terminated the agreement on June 30, 2023, cutting it short just ahead of a peak holiday travel season.
According to the complaint, Wheels Up contends that flyExclusive’s early exit from the programme caused significant financial harm and operational disruption. The refiling reiterates allegations of breach of contract, conversion, unjust enrichment, and unfair trade practices, among other claims. Wheels Up argues that flyExclusive retained a substantial portion of the deposits without delivering the contracted services, resulting in damages well in excess of USD 30 million.
The decision to refile in North Carolina reflects flyExclusive’s corporate and operational ties to the state, including its headquarters in Kinston, and is intended to address the jurisdictional shortcomings that derailed earlier proceedings. The case had previously been filed in another venue before reaching the New York state court, making the North Carolina action the third attempt by Wheels Up to secure a forum willing to hear the merits of its claims.
Neither company has publicly commented in detail on the latest filing. However, the dispute is being closely watched within the business aviation sector, where partnerships between jet-card providers and charter operators rely heavily on long-term revenue guarantees and advance deposits. The outcome of the case could have broader implications for how such agreements are structured, enforced, and litigated, particularly as demand volatility and fleet constraints continue to reshape the private aviation market.
As the case moves forward in North Carolina, the court will now determine whether Wheels Up’s claims can proceed to substantive review after months of jurisdictional setbacks.
Related News: https://airguide.info/category/air-travel-business/airline-finance/
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com