Jet Token is “a blockchain-based booking platform for the 4,000 jets available for use if you don’t own it”, says Mike Winston, the CEO of Jet Token.He estimates about 85% of chartered flights take place on aeroplanes like this, and his company will ‘accept any kind of crypto’ as payment to make it happen. “With 24 hours’ notice, we can have a plane ready for your desired flight, within its defined geographic area. Using a blockchain-based booking system makes the process more transparent and available to more people”, continues Winston.
Jet Token is looking to raise $10 million by selling shares in the company and will operate out of Las Vegas and build a Blockchain-powered platform, where bookings can be made using various cryptocurrencies or cash. According to the National Business Aviation Association NBAA:
- The jet industry contributes $150 billion per year to the US economy.
- The average private flight lasts 1.5 hours with 2-3 passengers and the estimated average cost to operate a US business jet is $5,000/hr.
- Most private charters include the cost of the empty return leg, so a 1.5-hour trip typically translates to 3 hours of billed time, i.e.$15,000.
Therefore, the market opportunity is sizeable and by using Blockchain technology Jet One is looking to improve the way jets are booked and hopefully avoid empty return legs, therefore cutting costs and being more environmentally friendly. But jet rental is competitive with forms such as NetJets, Jet Smarter, Felxjet, to name a few, all looking to offer similar services. Meanwhile, in the $3.7 trillion auto-industry, KryptoGraphe has reported on its top five firms which are using Blockchain technology to disrupt this industry too.
As we have seen greater regulatory pressure, fewer start-ups like Jet Token are using Initial Coin Offerings (ICO)s as a way to raise capital. However, they are still working to harness Blockchain technology and Digital Assets as core components of their business models.
