Pax Introduction Deck

Personal Airline ExchangeA data driven platform that empowers buyers and sellers to achieve

optimized solutions for jet charter

PAX built an exchange to bring efficiency

to the jet charter market. We attracted

new-to-charter customers.

But industry business processes hinder

reaching critical mass.

PAX is using market design to create a

model that is attractive to suppliers and

buyers.

INVESTING W ITH PAX 1

Personal Airline Exchange

PAX is…

DATA DRIVEN

SCALABLE

ENGAGING

AirBNB for jet charter


Lack of information on options

Forced to make decisions prematurely

Mistakes are expensive

Intimidating experience

Low conversion of leads to sales

High touch negotiations

Most sales are through brokers

Hard to reach the customer directly

Exploit inefficient business

model, making big profits at

expense of buyers and sellers

The Problem With Jet Charter

Buying jet charter is a complex match-making transaction, yet is

treated like a commodity by competitors, resulting in excess

capacity and added costs. Brokers extract undue value by

exploiting this inefficiency.

Customers Brokers Operators


Business blockers removed

Efficiency gains across the entire network

Remediation is automated

Suppliers and buyers benefit

Regional launch focused on share-shift

Phase Transition provides data on growth

New products released at proper timing to be successful: shared

charter

Match-making system

Shared Charter Sales

No “falling off the App”

Unlimited discovery by buyers without involving suppliers

Patentable IP

The Solution For Jet Charter

A new design for the charter market that benefits core

constituents and leads to more demand through the discovery

engine that addresses the entire negotiation process. PAX

introduces this platform with a launch plan that leads to long-

term success and acceptance.

Market Design Discovery Engine Launch Plan

The Team


Mike Azzarello

Founder & CEO

Bruce Sawhill, Ph.D

Co-founder & Science

James Herriott, Ph.D

Science Fred Reid

Aviation Operations

James Miller, Ph.D

Markets

George LeBeau

Finance

Founded JetLimo, successful charter sales through website. Built

SuiteShare and SuiteDeal Apps for JetSuite, booking 2-5 flights per day.

Sales Management at Sun and Oracle. Owner and COO for an

Oracle development firm building custom Apps for clients that integrate

with Oracle Financial Suite.

Co-Founder of DayJet, an on-demand charter service that allowed purchase

of individual seats for charter. Created proprietary algorithms to manage

floating fleet of jets. Inventor on multiple patents on aircraft trajectory

logistics. Ph.D in Physics from Stanford. Focusing on the development of

flight optimization algorithm that incorporates combined value auction

strategies to bring efficiencies to on-demand charter.

Co-Founder of DayJet. Ph.D in Computer Science from Stanford.

Converted algorithms from Bruce Sawhill into efficient code that allowed real

-time responses to users on availability, pricing and variance of requests.

Inventor on multiple patents for aircraft trajectory logistics.

Formerly: CEO Lufthansa Airlines, Founder & CEO Virgin America, CEO

Flexjet. Currently: an active Board member and officer on several aviation

related ventures. Expertise in operations, branding and strategy.

Jim Miller is an expert on various public policy issues, specifically regulated

air travel. Previous positions include Board of Governors of US Postal

Service. Chairman of Federal Trade Commission and Director of OMB

during Ronald Reagan Presidency. Ph.D in Economics.

Business Manager for Segel Group Limited, an investment firm in Southern

California with a diverse portfolio across multiple industries.

The Opportunity

PAX technology addresses the current jet charter

market and expands the service to the premium airline

market!


1 NBAA

2 Interviews with operators and industry journals

3 Wall Street Journal

4 Registered trademark

5 Charter at $14B and 10% of Airline at $3B

6 15% of Segmented Market

Total Addressable Market is $45 Billion

Domestic Charter First & Business Class

$31 B3$14 B1

Segmented Addressable Market is $17B5, 2016 Share of Market is $2.5B6


Buyers are able to perform the

discovery and information

gathering typical of a match-

making transaction, without direct

contact with sellers.

Sellers have powerful scheduling,

forecasting, and modeling tools to

optimize their aircraft in real-time.

The complexities of the system

are hidden from users through an

engaging and intuitive interface.

The Product

PAX is a web & mobile application that offers portals to both

buyers and sellers to transact charter sales with optimized

results, benefiting both parties.

PAX Product: Deeper Dive

Data-driven proprietary algorithms eliminate transaction

blockers, add pricing transparency, and use collaborative

consumption to make charter a competitive travel option


Real-time discovery & quotes

Combined

Value Auction

Transaction

Close

Payment

Processing

Flight

Management

Exception

Handling

Demand (buyers) Availability (sellers)

Optimized

Flight Plans

Indicates PAX defensible IP

PAX Business Model

Business Model & Value Proposition


A clear monetization strategy with proprietary IP is the

foundation to improve valuation for an exit.

EXCHANGE

MODEL

SCHEDULE

OPTIMIZATION

DIGITAL

INTERMEDIARY

MONETIZATION

STRATEGY

Add va lue for both buyers and

se l lers.

Of fer a un ique view of demand

for operators to schedule the i r

f leet according ly.

Charge a fee on each s ide of

the t ransact ion.

Play the cr i t ica l ro le of

coord inat ing mul t ip le par t ies on

one f l ights.

Landscape & Competition

New charter operator models are being tried, but at high

capital cost and risk. Competition is automating existing

business models, not innovating the industry.

Floating Fleets

High Capital commitment and risk. Difficult

to scale volume up. Share-Shift focus on

capture and retention of customers.

Commodity Sale,

Empty-Leg Focused

Automated existing business practices.

Combative with operators over margin. No

means to grow demand. Use gimmicks that

are not sustainable to attract users

Subscription Services

A new “all you can fly” model, but

scheduled service like airlines. Lose all the

benefits of on-demand charter.


Investment Opportunity

Convertible Note of $1,000,000

Convertible at a 15% discount to the next round

Valuation Cap of $5 million


Staff 34%

Market Design completion.

Discovery Engine coding. Staff

to support marketing, operator

engagement and sales.

Marketing 14%

Launch Plan execution - focus on

very specific markets, then grow

products and routes. High impact

for dollars expended.

Product 47%

Develop the Discovery Engine, Big

Data analytics, Remediation process

and flight optimization.

Use of Funds:

March 2016 – April 2017

Outcomes: Fully operational system, Launched in three regions, patent filings

Admin/Ops 5%

Operators we have worked with


Future Opportunities


New Aircraft

Perfect for Air Taxi service of

200-500 miles

Social Integration

Seamless integration with

networks to empower

collaborative consumption

strategies

International

2X Larger than US market


Contact Us

Personal Airline Exchange

www.PersonalAirlineExchange.com

877-230-8189

[email protected]

Date post:	14-Apr-2017
Category:	Travel
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