If it's anything like the Headless Horseman's Mount, you still need to dismount and remount when going between flight and no-flight zones. The HH mount doesn't automatically transition. When you fly into Dalaran, you'll get dismounted and have to summon again to have the "non-flying" version, even though it's the same mount. Likewise, while on the ground mount version, you won't automatically shift to the flyable mount when you reach Krasus Landing.
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