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AirChicago Holdings, Inc.

AirChicago Holdings, Inc. Investment Opportunity

68% funded (of minimum target)

Closed on 09/01/19

$68,000

amount committed 

$100k - $200k

funding goal 

Regulation CF

exemption used 

$15,000,000

pre money valuation 

$1,000.00

min investment 

41

investors 


Security Type
Preferred Stock
5,000 shares of its Junior Preferred Stock $40.00 per share
$15 Mil Valuation
Bonus
Bonus
As an acknowledgement of your investment in AirChicago Holdings, Inc., you will receive a complementary AirChicago Founder Jet Card. The holder of an AirChicago Founder Jet Card receives the following benefits:
  • Four (4) complimentary AirChicago Connect Flight Segments per year for life for each $1,000 invested in AirChicago Holdings, Inc.

  • Significant discounts on AirChicago Connect Program Seat Hours.

  • Access to AirChicago-arranged AirChicago Connect, Go-Jet, Co-Op, Explorer and JetAway flights. 

  • Complimentary membership in the AirChicago Barnstormers Club. 

Pitch

Who are we

Problem

Solution

Achievement & Traction

On August 31, 2018, ACHI completed Phase A of its start-up plan. Key milestones achieved in this phase include:

  • Secured $420,000 in operating capital through an Illinois State Regulation Crowdfunding offering ($150,000) and an SEC Regulation D private-placement offering ($270,000).

  • Recruited and trained its Leadership and Marketing Teams.

  • Incorporated 2 wholly owned subsidiaries—AirChicago Jet Card, Inc. and MyJet Express, Inc.

  • Received MyJet Express Public Charter Operator authorization from the USDOT.

  • Conducted the inaugural AirChicago-arranged Go-Jet flight.

  • Conducted the first Cardmember-initiated AirChicago-arranged Go-Jet flight (revenue generated).

  • Scheduled the inaugural MyJet Express public-charter flight for November 5, 2018.

  • Launched, developed and validated the AirChicago Jet Card marketing plan by selling or receiving deposits on over 110 AirChicago Jet Cards (revenue generated).

  • Established the AirChicago Board of Advisors (BOA). Initial members of the BOA include General John Borling (USAF-ret.), Dr. Charig Patel, Mr. Albert Montano and Ms. Lyndsey Zhang.

  • Recruited Coach Mike Ditka as an AirChicago Spokesman.

On September 1, 2018, ACHI began Phase B of its start-up plan. Key target-milestones in this phase include:

  • Secure $1,000,000 in additional operating capital through 2 Illinois Regulation Crowdfunding offerings ($500,000 total) and a continuation of its SEC Regulation D private-placement offering ($500,000).

  • Launch a multi-channel, integrated AirChicago Jet Card marketing campaign featuring Coach Mike Ditka that is focused on the market within 20-miles of Chicago Executive Airport.

  • Launch regular Chicago – New York MyJet Express Network flights beginning November 5, 2018.

  • Establish increasing revenue and market-traction trends with the sale of AirChicago Jet Cards and MyJet Express flight-segment fees.

When Phase B is completed, ACHI intends to begin Phase C of its start-up plan. Key target milestones in this phase include:

  • Secure $10,000,000 in additional operating capital through an SEC Regulation A+ and/or Regulation D offering.

  • Expand the AirChicago Jet Card marketing campaign to include the Chicago Metropolitan Area.

  • Secure leases on 35 Gulfstream G-IV business jets.

  • Expand MyJet Express Network flights to a total of 30 cities from 4 business-aviation airports in the Greater Chicago Area.

  • Achieve breakeven+ cashflow on an operating basis.
Market

AirChicago has entered the private-jet-travel market through the sale of its AirChicago Jet Card.  Management believes that AirChicago gains several advantages by being positioned in the jet-card market.  These advantages include:

  • The benefit of selling into an aware market. A large percentage of AirChicago’s potential customers are familiar with jet cards.

  • The AirChicago Jet Card is one of the few jet-card programs that provide access to a Public Charter flights on a per-seat basis. Typical jet-card programs provide access to whole-aircraft charters operated by FAA Part 135 on-demand air carriers.

  • The AirChicago Jet Card is by far the lowest-cost jet card in the market. AirChicago Jet Card upfront costs, recurring costs and hourly rates are a fraction of those charged by typical jet-card programs.

  • The AirChicago Jet Card is the only jet card that can be used to purchase a single seat on private-jet charter flights.

  • The AirChicago Jet Card has the lowest required jet-card-commitment level.

  • The AirChicago Jet Card allows the most number of flight hours (AirChicago is unlimited vs. 25 – 100 hours for typical jet cards).

Database searches performed by Bay MarketForce indicate that within a 20-mile radius of Chicago Executive Airport, there are approximately 2,000 company-headquarters facilities serving companies with annual revenues in excess of $10-million.  Also, within that area, there are approximately 45,000 individuals whose net worth exceeds $1-million, their annual income is at least $250,000 and they belong to an airline frequent-flyer program.  An estimated two-thirds (99,000) of the estimated 150,000 Chicago-area business travelers who may be interested in and can afford an AirChicago Jet Card live within a 1-hour drive time of Chicago Executive Airport.

The AirChicago Jet Card marketing-and-sales campaign is multifaceted, highly targeted and innovative.  It is a high-tech/high-touch, highly integrated marketing-and-sales campaign.  The campaign includes the following elements:  a traditional direct-mail campaign that is designed to generate inquiries;  a highly-targeted, high-response-rate follow-up direct-email campaign;  an email campaign;  print-and-online advertising campaigns;  a publicity campaign;  a promotion campaign; a Website with SEO;  an outbound-and-inbound-phone campaign;  a direct-contact campaign;  a referral campaign;  a social-media campaign and special introductory offers. AirChicago has retained the services of Mr. Mike Ditka as a spokesperson for the company.

Competition

AirChicago’s primary competitive strategy is to take market share from the legacy airlines.  In AirChicago’s opinion, there has never been a better time in the history of the air-transportation industry to do that.  This is especially true in the legacy airlines’ premium-fare market segment.  At the present time, AirChicago has no Chicago-based competition in the single-seat, private-jet charter market.  Therefore, AirChicago has the opportunity to capture the first-mover advantage in the market.  The following can be identified as AirChicago’s competitors in the private-jet-charter market: 

  • Surf Air, headquartered in Santa Monica, CA, is a membership-based, private-aircraft operator. It was founded in 2013.  It recently announced that it has signed up its 3,500th member.
  • OneJet began service between Indianapolis and Milwaukee on April 6, 2015.
  • Rise, based in Dallas, TX, started operations in June 2014.
  • Texas Air Shuttle is based in Conroe, TX. On January 6, 2016 it received its FAA Part 135 on-demand air carrier certificate.
  • Jetsmarter, headquartered in Ft. Lauderdale, FL uses a hybrid empty-leg-charter-broker-public-charter business model. It claims to be the fastest-growing single-seat-charter operator in the world.  Its annual access fees range from $10,000 to $15,000.  Jetsmarter offers 3 types of services:  Jetdeals—seats on empty-leg charter flights, Jetcharter—a charter-broker service and Jetshuttle—single seats on fixed routes.  Jetshuttle routes include a Chicago (Midway) to New York City route.  However, it appears this route is flown infrequently.  Its business model is partially based on using a USDOT Public Charter Number.  Jetsmarter claims to have over 9,000 members.
  • Wheels Up, based in New York City was founded in 2013 by Kenny Dichter. In 2001, Dichter founded Marquis Jet which went on to become one of the largest jet-card companies.  In 2010, after more than $4 Billion of jet card sales, Marquis Jet was sold to NetJets, a Berkshire-Hathaway company.  Wheels Up began operations as an aircraft-charter membership club selling membership for an initial upfront fee of from $17,500 to $29,500.  Monthly membership fees range from $8,500 to $14,500.  Members can purchase whole-aircraft charters in twin-engine turboprops (King Airs) and light-to-medium business jets.  As of May 2016, Wheels Up had over 2,750 individuals and companies as members.  It recently announced its entry into to single-seat-charter market by offering scheduled flights in King Airs and Cessna Citations in selected markets on the east coast and on a transcontinental route.  Dichter has predicted that Wheels Up membership will pass the 3,700 mark.

Business Model
Team

Capt. David C. Koch:  Capt. Koch is the Chief Executive Officer and Chairman of the Board of AirChicago Holdings, Inc.  He has over 50-years of aviation-industry experience. 

 

Stephen G. Wasko:  Mr. Wasko is the AirChicago Holdings, Inc. President and Chief Operating Officer.  He has served as the president, COO and CFO of several start-up firms.  He is also an experienced aerospace engineer.

 

Nathan Juncan: Mr. Juncan is the AirChicago Jet Card, Inc. President. He is a successful Chicago-based entrepreneur and aviation enthusiast.

 

Christopher Jansing:  Mr. Jansing is the AirChicago Jet Card, Inc. Executive Vice President-Cardmember Services. He is a successful entrepreneur with extensive private-jet-travel experience.

 

Christine Koch:  Mrs. Koch is the MyJet Express, Inc. Vice President-Public Charter Operations. She is an experienced professional pilot with prior experience with USDOT Public Charter operations.

 

Bay MarketForce:  Bay MarketForce has, since its founding in 2007, generated $1.5-billion in total pipeline for its clients.  Its current active pipeline is $534-million with total sales due to Bay MarketForce leads equaling $137-million.  Its clients include Travelocity, IBM, Johnson Controls, Seko, Benz Oil, ABC, Domino’s Pizza, Northwest Pipe and Skyline Technologies.

 

Use of Funds

Updates


No updates, yet. Stay tuned.

Q&A


Unfortunately, this securities offering is closed. For questions, please email support@trucrowd.com. Thanks!

Adam Harmon
Adam Harmon - Issuer 2 years ago
So with the $1000 investment, we would get 4 flights annually for life? Now is that just 1 ticket or could we use 2 at a time? Also where are all the cities you fly to? Is there a schedule like other private jets apps have of where they fly to?
Adam Harmon
Adam Harmon - Issuer 2 years ago
So with the $1000 investment, we would get 4 flights annually for life? Now is that just 1 ticket or could we use 2 at a time? Also where are all the cities you fly to? Is there a schedule like other private jets apps have of where they fly to?

Documents

Business Plan Development Download
How to make your investment -step by step Download
Offering Statement Download
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