Private jet charter and membership.
Our business combines concepts from fractional jet membership programs with lessons learned from building blockchains and their communities. We believe the tokenization of flight hours and (as we mature) fractional membership programs offers the possibility of reduced transaction costs and, through the evolution of a marketplace, higher industry fleet utilization. Our purposeful enhancement of price discovery and reduced entry price have the potential to produce fairer and more inclusive results for aircraft owners and travelers alike.
We formed our company on June 4, 2018, to establish a booking platform for private jets paired with a leased fleet of HondaJets, linked by blockchain technology. Since that time we have negotiated terms with Honda Aircraft Company for 4 HondaJets and with Gama Aviation for the maintenance, management and operation of our leased aircraft. We have also developed and, in September 2019, launched our iOS app JetToken, which currently functions as a prospecting and quoting platform to arrange private jet travel with third party carriers. We can now function as a charter broker and we expect to launch a functioning iOS app with a payment processing capability by year end. The new proposed app is expected to service clients booking charters through us.
Our next step is the creation and sales of Jet Tokens and the sale of blocks of 50 hours of flight time on our leased HondaJets. We will accept cash or blockchain currencies, such as Bitcoin, in exchange for service and will maintain client funds in digital wallets on our platform until clients redeem Jet Tokens for travel. We ultimately expect Jet Tokens to be redeemable for private jet travel with third party carriers. In creating and selling our Jet Tokens, 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. We intend to pursue further guidance from the SEC’s Strategic Hub for Innovation and Financial Technology (FinHub) in advance of the sale or distribution of any tokens or blockchain instruments.
Once we acquire our HondaJets, in addition to servicing members and third party charter, the aircraft would be available to address unexpected cancellations or delays on brokered charters. Unlike most of our brokerage competitors, as well as many business jet management companies which require owner approval before their aircraft can be used for third party charter, we believe maintaining a fleet of readily available aircraft to back fill third party charter services provides more reliability and will be an attractive selling point for potential clients.
Ultimately, we envision a time in which a client purchases from us a jet hour card or a fractional interest in a plane using cash or blockchain currency and in return receives Jet Tokens redeemable for travel on our fleet, with third party jet carriers or on commercial airlines. The decentralized marketplace for private jet travel (arrivals, departures, aircraft description, aircraft photos, taxes, prices) has the potential to offer improved access to services for aircraft owners and travelers. We believe 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.
We believe our strategy of combining, in our searchable instant booking platform, availability of private jet carriers, commercial airline flights and private jet owners underutilized flight time increases the efficiency and optimizes the cost to our clients of getting from point A to point B on their own terms.