Technology

US Startup Raising $10M for Private Jets You Can Lease with Cryptocurrency

Technology

There is a raise of up to $10 million for jet token in a Regulation A which offers ethereum-powered private jet leasing marketplace where as a traveler you can use ECR20 tokens to pay or charters.

People who are willing to pay more than business class seats can use a travel option known as Private Charter flights. This is actually an industry which is lively in the U.S and has ticket prices which are quite substantial. For example, it would cost you $15,000 to travel on a charter from New York to Miami.

It is believed that it can be much more flexible to add tokens as a form of payment and it will also “allow for faster booking confirmation of air charter flights, particularly on weekends and holidays coincident with periods of peak travel demand,” said Jet Token in a statement.

According to data released by the General Aviation Manufacturers Association, the U.S has 14,217 business jets which make the country a leader in the industry. But, only 2,876 of the jets are available for charter booking.

The theory around jet tokens is that it will allow rich travelers to have more access to various options in the market. Here is a pitch that it gave to airplane owners and travelers:

“Aircraft owners would achieve higher revenue per seat mile by filling an otherwise empty plane, and travelers would achieve access to on-demand travel at a lower average cost because of greater market transparency and price discovery.”

The SEC

The company was founded in July 2018 and will compete with Turnkey Jet, Inc. This is also another a company which is building a service that is similar and actually the first crypto company to be able to secure a no-action letter from the SEC on April of this year. However, Jet Token decided to get more additional fundraising for its raise.

Jet Tokens hopes to turn the decision of the SEC on Turnkey and follow the same path in order to avoid their future tokens from being deemed securities; for instance the tokens would not be used to fund any development of the platform or be presented as to having any profit potential.

“We intend to operate in full compliance with the SEC’s guidance in the TurnKey Jet, Inc. No Action Letter dated April 3, 2019, and any future refinements to that guidance in the future, so that U.S. federal securities laws will not apply to the offer, sale and any resale of Jet Tokens,” Jet Token’s filing with the SEC reads.

When it comes to the tokens, the platform is “currently in development and is not yet operational,” says Jet Token and it’s not clear yet when the tokens, based on the ethereum blockchain, will be issued. Potential clients will be able to buy the tokens for cash or cryptocurrencies, Bitcoin in particular.

Mobile Apps and Jets

Jet Tokens claims that it already launched an initial version of its iOS app back in September. It has plans by the end of this year to ship the version that has built-in crypto payments. The company plans to serve as a booking flights broker, as well as operate its own reserve of fleet of aircrafts which clients can use in case a flight they booked got cancelled or delayed.

Here’s what the filing said about the company:

They “negotiated terms with Honda Aircraft Company for 4 HondaJets and with Gama Aviation for the maintenance, management and operation of our leased aircraft.”

According to the recent SEC filing of Jet Token, Mike Winston is the one who leads the company, who is also the principal at Sutton View Capital; as the founder, executive chairman and treasurer. George Murnane is the CEO and he chaired a number of aviation-related companies previously, with the last one being ImperialJet charter broker.

Source: https://www.coindesk.com/us-startup-raising-10-million-for-private-jets-you-can-lease-with-crypto

About the author

Coleen Baker

Coleen Baker

Thirty-something coffee-addict and mother to two dogs, who lives and breathes all things Technology. I've had an interesting career since leaving school; from serving baguettes to supplying Technology content for companies around the globe. I also take a great interest in world politics.

Email: coleen@blog.ca
Phone: +1 416 551-0431

Add Comment

Click here to post a comment