Jet Token is developing its Ethereum-powered private jet leasing marketplace to enable travelers to pay for charter flights using Ethereum. In a Regulation A offering it’s raising up to $10 million.
A charter flight from New York City to Miami is approximately $15,000, a lucrative ticket price for an industry touted as lively and upmoving in revenue. This service has given a chance for business class travelers to enjoy a business jet experience.
According to Jet Token, the use of tokens as a form of payment allows for a flexible payment process and a faster booking confirmation. General Aviation Manufacturers Association provides data that shows US as the leading private charter flight nation with 14,217 business jets.
But due to poor management of the industry, there is a high number of unutilised jets, unoccupied seat capacities, and high price disparities among the different private carriers. According to Jet Token, rich travelers will get more options of payment with the use of their platform and aircraft owners get to earn higher revenues due to higher seat occupancy and better utilisation of assets.
Turnkey Jet Inc., Jet Token’s competitor, is the first company that managed to secure a No Action Letter from the SEC in April 2019. This letter helps Turnkey’s future tokens avoid being converted into securities. This would hinder the token to be used to fund the development of their platform and be presented as a profit potential. Jet Token has reported that its platform is still in development and not yet operational.
The company gave a statement that it isn’t clear yet when the tokens will be issued. Jet Token’s potential clients will be able to buy these tokens for cash or Bitcoin.
Jet Token’s initial version of its iOS app was launched in September 2019. By the close of 2019, Jet Token plans to ship a version with built-in crypto payments. The private jet leasor will serve as a broker for booking flights. To solve cancellations and delays, the company will operate it’s own reserve fleet of aircraft.
The company’s filing with the SEC said it had negotiated for 4 Honda jets with Honda Aircraft Company and its leased aircraft will be maintained, managed and operated by Gama Aviation. The filing with the SEC also showed its top leadership heads – Mike Winston, founder, executive chairman and treasurer, and the CEO, George Murnane.