The PAX offering is now closed and is no longer accepting investments.

PAX

Crowd Economy Solution for Jet Charter

Regulation Crowdfunding
Santa Monica, CA
Transportation
US Investors Only
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These are companies the Team has been involved with; does not indicate an endorsement by these companies of PAX.

The On-Demand Airline That Has a Low Cost Per Seat

Invest in PAX, The Personal Airline

 PAX combines the best elements of on-demand charter with the low per-seat cost of scheduled airlines. Our vision is a new air travel model that lets you set the most important points of your trip—the on-demand part—then have a virtual negotiation with other passengers and charter operators. The result is creation of flights that meet your goals and are shared by other passengers. PAX flights are faster than driving or the airlines, and are cost effective.


NASA & FAA Small Aircraft Transportation System (SATS) research found that airline speed has dropped dramatically, especially for short trips.  PAX flights focus on these trips, between airports that have poor airline service.  Driving is the alternative, but congestion in Mega-Regions is making these trips more difficult.


"Flying on business jets is great! The whole experience is about saving time, luxury, and avoiding the hassles of airline travel. But jet charter is crazy expensive, it is a service for the '1%'!" PAX changes this.


First, we retain the best part of on-demand charter, namely you get to "demand" a flight - specify the dates, times, and airports and a lot more. We then integrate the per-seat cost of airlines - you only pay for the seat you are in, not the whole aircraft.  


There are a lot of proprietary programs and specialized processing we do to make this work, but the result is a platform that is easy to use, and that works to find the best solution for you.


The team has experience across a wide segment of aviation and technology - critical to achieving our goals for product design and development.


PAX is crowdfunding to fund the development of the new application design and the Launch Plan to prove traction of the system and service. And we want to attract people to PAX; what better way than to offer an investment to people that are likely to use our service!


Investment

$1 / share of Common Stock | Minimum $500 investment

When you invest, you are betting the company’s future value will exceed $3.7M.

What We've Accomplished So Far

  • Seed funding from Segel Group to build and deploy the prototype system - 2014/2015
  • Launched service for Colorado ski season - Telluride resort - 2015
  • Sales of $55,000 during Prototype test 
  • +6,000 interested users
  • +1,500 online quote requests
  • Selected by KiwiTech Accelerator program in May 2017
  • Performed simulation of market design to test the algorithms
  • Completed Market Design & Technical Design in 2017 for the new system
  • Launched crowdfunding in September 2017 to build the system and deploy in limited release

What People Are Saying About PAX

"PAX is what's needed now!  Not only is airline travel a pain, but many trips are too long to drive because of traffic. PAX fixes this!"

John Shields

Former CEO Trader Joes, investor in PAX

"I have used PAX services on several occasions. When I can request a flight and have the system manage the process to share it, I will use it even more! Perfect for the regional trips that simply take too long."

Ben Beazley, President of RTS Insurance

Our History

PAX is the result of two previous companies' founders combining efforts to realize a common vision of what air travel could be.

Bruce Sawhill was co-founder of DayJet.  Their model was to address the MegaRegion travel problem by creating an air taxi service.  The service would allow passengers to make trips of 100-300 miles in a jet at $1-3/mile.  The company raised venture capital and made a big bet on a new aircraft type, the Very Light Jet.  Eclipse Aircraft was an early entrant in this space, and DayJet bet their company on it.  Eclipse was several years late, and when it did arrive it was not hitting the performance and operational targets originally planned.  DayJet launched service in 2007, three years late, but immediately saw demand for the jet taxi model.

 With an online system that checked availability and pricing in real-time - Bruce’s invention - DayJet broke new ground in the science of air taxi operations.  Operating for a year, they refined operations and systems, reaching the point of profitable flights and consistently combining passengers on flights.  DayJet sought a Series B round of funding as the financial crisis was peaking in 2008.  All funding was effectively frozen.  Even though DayJet was operating and growing it was still burning cash - without more funding DayJet ceased operations in late 2008.

During the same time that DayJet was building their company, Mike Azzarello founded JetLimo and launched the site with seed funding.  JetLimo launched in 2008 and generated user visits to the site.  The system provided real-time quotes for charter, and a mechanism to book a seat or flight, and then promote it to other passengers.  Relying on a Field of Dreams strategy - “build it and they will come”, JetLimo calculated that once a critical mass of users was reached, there would be organic aggregation of people on flights.  The critical mass of active users did not materialize, but JetLimo site traffic generated charter sales.

Mike connected with Bruce through LinkedIn.  Together they started discussing how to address the market with a new model, learning from experiences at DayJet and JetLimo.  May 2011 JetLimo signed a strategic agreement with JetSuite for custom charter applications.  With the introduction of SuiteShare, JetSuite's private branded shared charter service, JetLimo's technology was in use by a leading charter operator.  In 2012 the agreement was expanded with SuiteDeal, a completely automated empty-leg sales tool with a bidding feature.  Close to 1,000 flights were booked as SuiteShare and SuiteDeals using JetLimo's technology.

The team met with Segel Group Limited (SGL) in Santa Monica CA in early 2014.  David Segel had interest in aviation investments but also the creation of exchanges to bring efficiencies to complex transactions.  This is when Personal Airline Exchange, Inc. started - a platform to address the complexity of charter with the efficiency of electronic exchanges.

Knowing that more consumer friendly names were needed, PAX trademarked "The Personal Airline", "JetSeat" and "Crowd Scheduling".  With seed funding from SGL, PAX performed a market survey and built a test plan to judge consumer acceptance of requesting, negotiating and buying charter online.   



The launch of the prototype system took place during the Winter, with focused marketing on ski season travel.  Substantial user traffic to the site confirmed that people were willing to proceed far into a transaction on a website or mobile device before needing to talk directly with a person.

What was still not working was an automated method to have multiple people negotiate with each other to find a common flight.  

PAX and SGL discussed the need to perform research on the science and math required to achieve our vision.  PAX scaled back marketing spend and development work on the prototype site, focusing resources on research and design.

The PAX team deconstructed both DayJet and JetLimo operations, as well as current charter business practices, including charter brokers.  Leveraging PAX advisors, the team focused on the Economic strategy of Market Design to take an existing inefficient market and improve its operations for the benefit of all participants - buyers and sellers.  Market Design is especially useful for complex transactions, like jet charter.  This allowed the team to visually model how a system would work, retaining the core principal that it remain "on-demand" charter.  The research lead to Agent Based Negotiation - computer systems that negotiate on your behalf with other Agents, and the design of an operator focused bidding system to improve their utilization and efficiency (revenue per hour).  Bruce overlaid his flight optimization formulas onto the system, bringing it all together.  And we discovered the missing element, "change management" - charter has egregious terms for cancellations and changes.  The PAX team created a system, using flight optimization, to minimize the financial impact to passengers when a change or cancellation occurs.


It's Time to Disrupt the Charter Market

The on-demand charter market is ready for disruption!  But unlike taxi and home rental, charter transactions are complex and have high costs - a comprehensive system that addresses all the elements of on-demand charter, and incorporates multi-party negotriaiotn, is needed to deliver a breakaway technology.  Existing attempts so far show the same pattern of reverting on-demand charter to scheduled airline service - this takes away the most valuable aspect of charter!  The PAX decision to pause operations and focus on the foundational issues means that PAX is well positioned to deliver a breakthrough service today.  The combination of Mega Region dynamics and alternative travel models means people are willing to try new services if they offer an order of magnitude improvement to existing options.  For this funding round, since this is deployment of a new model, we kept the company valuation at the same level that was set for the Seed Round.  This crowdfunding campaign funds the development of the new design, website and mobile App, and funds the marketing plan to drive sales within the selected markets (granularity to zip code and neighborhood).  Follow on Crowd Funding campaigns will adjust the valuation of the Company based on proof of traction from the launch.


The Personal Airline Service

To passengers and charter operators, our App is an intuitive "airline like" system to request on-demand charter.  What is hidden is the proprietary algorithms addressing the issues of negotiating on-demand charter in a shared per-seat model.  Our design addresses these issues, bringing to market a breakthrough in on-demand charter. 

Challenge: Network Problem

There are 38,760 possible solutions when twenty people attempt negotiating a flight with six seats. Direct communication is virtually impossible.

Challenge: Complex Transaction

Charter is expensive, so mistakes are expensive.  And it's a complex transaction, with six core variables and over 20 total variables - each potentially having multiple values.  The possible solutions skyrockets to the billions for the same flight of six passengers (see box at left).  

The PAX Advantage

The PAX Team reviewed the data from our Prototype launch, and compared it to our experiences with earlier companies.  We then performed a "clean sheet" design of an on-demand charter market with shared seats.  Key participants of the team were a Ph.D. in Economics who is an expert in airline economics (regulated and unregulated), and another adviser with extensive aviation operations expertise.  We believe the result is a breakthrough technology!

Virtual Negotiation Agents communicate with each other, on behalf of the user, finding optimal solutions in seconds.

Artificial Intelligence provides users with "intelligence augmentation" to make better decisions faster, and avoid mistakes.

Flight Optimization, our proprietary "secret sauce", is embedded in the negotiation agent system and the AI system. 

A tour of the PAX Service - imagine you need to take a trip that is about 300 miles.  Too long to drive, but if airline service is limited, your flights times are pretty close to drive time.  With PAX you start a request and instantly see: any existing flights, other passengers' request with similar travel plans, and flight availability by operators.  PAX embarks on an Agent based negotiation process with all of these groups.  You see your options, are provided recommendations, respond to the recommendations, PAX continues negotiating for you, and in a short period of time you see your best choices.  You then decide if you want to commit to the flight (payment), place a hold and pay later, or simply be informed of changes, e.g. more passengers and lower fare.


System Features and Benefits


  • Intuitive User Interface & User Experience
  • Agent based negotiation algorithms  
  • Multi-party (more than two) negotiation algorithms 
  • Operator focused bidding system to drive value
  • Flight Optimization embedded in the system
  • User flexibility on committing to a flight 
  • Automated Change Management - address cancellations and disruptions in real-time with limited exposure for users  
  • Machine Learning Artificial Intelligence 

The Market for Chartered Flights

The private charter market is about $23 billion per year - IBISWorld "Charter Flights in the US: Market Research Report". This is small compared to domestic airline market of $168 billion.  Just airline First Class and Business Class, 26.8% of revenues, is $45 billion for 2016 - International Air Transport Association.  Breakaway success is reached by bridging the gap between on-demand private jet charter and scheduled airlines.  When a chartered jet is shared and operational efficiencies are improved through flight optimization, the price per-seat is within range of airlines.  And PAX flights are dynamically created based on user demand, so they are the trips that people want, not a predefined schedule.

Air Travel in the U.S.

719M passengers per year

$168B in revenue per year

BUREAU OF TRANSPORTATION STATISTICS, U.S. Department of Transportation - 2016 Data

The Sharing Economy, Up in the Air

Private jet charter is plagued with a thin number of buyers and a fat number of sellers.  This leads to constant battles by charter companies for the same buyers.  And most of charter sales are by brokers, who treat it as a commodity.  But there is a big difference between operators that matters for buyers, for example, age of the fleet, training of crew, alternate aircraft availability, are just a few.  


The PAX solution provides buyers with a platform to successfully negotiate a shared charter flight, factoring in the many variables and letting users assign a personal value to each.  


And PAX provides operators with a comprehensive dashboard that allows successful bidding on flights - with integrated flight optimization they can overlay their charter flights with PAX flights to find optimal flight plans. This holistic approach is why Airbnb broke away from other online home rental companies, propelling it past their competitors in a short period of time. 

Offering Summary

Maximum 100,000 shares of common stock ($100,000)

Minimum 10,000 shares of common stock ($10,000)


Company
Personal Airline Exchange, Inc.
 

Corporate Address
401 Wilshire Blvd, Suite 1070, Santa Monica, CA 90401
 

Description of Business
Online jet charter booking service
 

Type of Security Offered
Shares of PAX common stock
 
Purchase Price of Security Offered
$1.00
 

Minimum Investment Amount (per investor) 
$500













Irregular Use of Proceeds

The Company will not incur any irregular use of proceeds.

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Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$384.00 USD
$670.00 USD
Cash And Cash Equivalents
$384.00 USD
$670.00 USD
Accounts Receivable
$0.00 USD
$0.00 USD
Short Term Debt
$1,000.00 USD
$2,709.00 USD
Long Term Debt
$0.00 USD
$0.00 USD
Revenues And Sales
$55,260.00 USD
$0.00 USD
Costs Of Goods Sold
$45,295.00 USD
$0.00 USD
Taxes Paid
$0.00 USD
$0.00 USD
Net Income
-$131,389.00 USD
-$6,994.00 USD

Risks

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.


Updates

Six hours left and still getting investors!

almost 2 years ago

Wow, with hours to go we are still getting new investors!

Thank you!!

Mike

Happy New Year!

almost 2 years ago

The PAX Start Engine campaign closes tomorrow.  Thank you for your interest and to those who invested.  We are moving fast with the new design of the application.  Including fun stuff like getting some of the algorithms working on Graphics Processor Units, giving us 1,000s of times greater performance for our AI Negotiation Agent (need to be a Geek to think it is fun!).

This last week I have seen two different news articles reference the need to go "3 Dimensional" to address traffic congestion in Metro Areas and Mega Regions.  Often this is thought of as raised roads and railways, or subways.  But for PAX, and the founders of Zee Aero, it means using electric VTOL aircraft to travel at 150 mph to cross 50-100 miles trips in minutes not hours.

Another interesting sequence of news was on Uber, specifically their challenge to get to profitability.  While there are companies willing to invest in Uber, being profitable is not required, but there is always that day when "fund raise" needs to be from sales and profits.  This was highlighted with Uber selling their car leasing company, and with SoftBank making a large investment at a steep discount.  Uber needs to stem the large loses so that they can attract new investment.  But with many "functional equivalents", i.e. Lyft, Uber is trying to become the global standard that all others are measured against.  Amazon pulled this off and reached profitability.  Will be interesting to track Uber on this path.

The PAX team believes profitability should always be a goal with a date in the near future, while balancing the growth demands of the company.  To that end, we are working on patent applications for different pieces of technology, as well as a focus on building our brand and name recognition.  The thinking is that if we focus on high value for the company (technology, user engagement, revenue), and have profitability (or a path to break-even), we are in a much better negotiation position when raising funds.  And our experience with Crowd Funding on Start Engine has been so positive, we would love to continue in this format for as long as possible.  Not only did we raise above our target, we were connected with several Angel investors who are interested in making investments.  And we believe people who would use The Personal Airline should have an opportunity to be an investor.

Happy New Year, and look for The Personal Airline take off in early 2018!

Mike Azzarello

Exciting news in aviation

almost 2 years ago

Aviation news that foretells some exciting times ahead!

Super Sonic Jets are coming back.  This time with better (quieter) sound profiles and more fuel efficient.  

https://www.csmonitor.com/Technology/2017/1222/Companies-race-to-produce-supersonic-jets-suited-for-everyday-travel

And Boeing is looking at acquiring Embraer - the two companies have multiple joint ventures.  But now the entire line of business jets at Embraer would have the resources and expertise of Boeing backing them.  This will help make business jets more like airlines from a utilization and reliability stand point.

https://www.wsj.com/articles/boeing-held-takeover-talks-with-brazilian-aircraft-maker-embraer-1513874742

The PAX Campaign Count Down

almost 2 years ago

The StartEngine campaign is counting down.  We are pleased with the progress and are currently deep into application build.  The next crowd funding campaign will occur after launch of the service.  The valuation will be adjusted to reflect the release of the application and availability of key performance indicators: revenue, user accounts and engagement with the application.

Questions or comments, post a message here.

For more information on the campaign, visit StartEngine,

https://www.startengine.com/pax

Your Time Machine

almost 2 years ago

In preparing for a presentation, one of our team members said the short description of The Personal Airline is a Time Machine!

This is what popped in my mind - the classic version from H.G. Wells!

But on searching for some images, this came up, and I thought of Marty McFly zipping through space & time!


Flights on PAX let our customers realize incredible time savings.  Which means getting more done in a period of time, since we can’t really “save time”.  Looking at charter trips we have booked, the time savings were huge!  The lure of flying private is the luxury, but the real benefit is doing more with less (time).

One example of a flight we booked was for a company that needed a flight from Van Nuys, California (Los Angeles area) to Addison, Texas airport north of Dallas.  Five people needed to meet with a customer in Addison.  The trip was a same day round trip.

The profile of the trip on PAX:

  1. Depart at 8am from Van Nuys, CA airport – 3 hour flight
  2. Land in Addison, TX at 1pm local time – 2 hour time zone change
  3. Arrive at customer’s office in less than 30 minutes after landing for lunch & meeting
  4. Depart for return to airport at 4pm local time, drive time less than 30 minutes
  5. Depart Addison at 5pm local time – 3 hour flight
  6. Land in Los Angeles at 6pm local time

PAX enabled five people to fly 1,250 miles across two time zones, hold their meeting, and still return home at a pleasant time.  The team worked in comfortable seats, big tables and complimentary Wi-Fi.  The PAX flight cost $1.25 per mile per passenger – a representation of PAX flight optimization at work!
This flight is impossible with the airlines.  The team would have been on a redeye or staying overnight.
The value of time is individual and personal – which is why we named the company The Personal Airline – only you can set the value of your time when considering flying PAX.

Now you have a crisp image of how PAX is valuable for you!

Thank you for being a follower of PAX.  Feel free to contact me if you have any questions about the company or the StartEngine campaign.


Happy Thanksgiving!
Mike Azzarello


Notice of Funds Disbursement

almost 2 years ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, PAX has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in PAX be on the lookout for an email that describes more about the disbursement process.


This campaign will continue to accept investments until its indicated closing date.


Thanks for funding the future.

-StartEngine

PAX presenting at KiwiTech Ventures Demo Days in Los Angeles

almost 2 years ago

KiwiTech Ventures has invited The Personal Airline to present at their Demo Days conference in Los Angeles on November 14 to a group of Investors.

To request an invitation, click this link, http://www.kiwitech.com/demoday/

The Personal Airline has an Intelligent Agent

almost 2 years ago

A major advantage of PAX is that we let you define your trip to your personal specifications – trip details and pricing.  This is important since without the on-demand part, PAX is simply an airline using small aircraft.

When you need a flight, you enter trip information on the PAX site or App: origination airport, destination airport, travel date, departure time and arrival time.  Then the PAX Agent starts to work for you - an artificial intelligence program that operates on your behalf to match your request to that of dozens of other users, finding enough to make a flight.

The typical sequence is,

  • After making the request you receive a response indicating matches to flights and other passengers.
  • Then PAX engages the Negotiation Agent, and negotiates with Agents of other passengers, seeking to get you a seat on a flight.
  • A primary objective of the Agent is to get you a flight as close to your preferred terms as possible.
  • The Agent negotiations happen at computer speed, you receive updates from PAX shortly after your initial request.
  • PAX may respond with a tip for you to improve your request, making it more likely to reach a flight.
  • What is exciting is that this process is happening simultaneously with dozens of other passengers!
  • Once a flight reaches 4-6 passengers, you get a notification that you can now book your seat.

The current site is our prototype, we built that in a few weeks to test the market.  The new site will be significantly more enhanced in functionality.

Thank you,

Mike

Hit our target! Thank you!!

almost 2 years ago

The Personal Airline is taking off thanks to you!  The Target Raise was hit today.  Campaign will stay open until the deadline or our upper limit is reached. 

We are making progress on the new system, and your support allows us to accelerate this.

Spread the work about PAX and lets get to the maximum, you can share the link to the campaign, 

https://www.startengine.com/pax

Best regards,

Mike

PAX is Approaching Minimum Investment

about 2 years ago

The PAX Start Engine campaign is moving rapidly towards the Minimum Raise.  Once there, we will be promoting the site actively on our social media sites and to our email lists, and anticipate spots will go quickly - only about 200 investors for this campaign.

Contact me through StartEngine with any questions I can answer.

Thank you for your interest in PAX!

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