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Cryptocurrency has emerged as an alternative currency to traditional forms of payment. Most notably, Bitcoin surged in popularity in recent years, and was the beneficiary of new SEC approval for cryptocurrency ETFs, bolstering its volatility.

A Florida-based private charter company, Bitlux, is revolutionizing private jet travel by allowing for its charters to be paid in cryptocurrencies like Bitcoin and Ethereum.

Bitlux

The company revealed that one in three private jet flights were reserved utilizing crypto. The private charter company accomplished over 1,700 take-offs and touchdowns starting in early 2021. In addition, it achieved more than $32 million in revenue, approximately 510 Bitcoins on March 20, 2024. 

In October 2023, the Chief Executive of Bitlux, Kyle Patel detailed the company's approach to crypto payments and refunds, emphasizing the efficiency and manageable use of the service. Patel underlined the benefits of cryptocurrency with its "global, nearly instant, peer-to-peer payment processing,". It lowers the challenges of traditional payment methods which may cause delays and other downsides.

On the official website of the airline, Bitlux furthers its reasoning for embracing cryptocurrency. The company's motto is to "put the private back in private air travel." Cryptocurrencies are known for their basis on blockchain technology, allowing for encrypted and decentralized transactions. These cornerstones of cryptocurrencies make it more private and secure. It is one of the first private jet companies to utilize payments in cryptocurrencies for its flights. 

With cryptocurrencies accelerated growth and viability on a global scale, this concept creates space for investors to utilize their cryptocurrency for luxurious real-world experiences. They integrate core values such as privacy, efficiency, accuracy, and safety in a refined way while combining aviation and cryptocurrency. 

To charter jets, Bitlux offers an online quoting tool the clients can send their desired flight details to the charter department and after the request, the company can check the availability and structure a plan satisfying the needs of the passenger. 

Bitlux CEO Kyle Patel talked to Airport Technology about Bitlux and their place in the industry: "As far as I know we are the only people in the brokerage position that have regular structures, industry-specific training on logistic handling, and networking," and adds, "Our guys are specifically trained on international logistics, but our sweet spot is on heavy cabin international trips, which is one of the big things that separates us from other companies," 

The Boca Raton-based company, Bitlux, has covered more than 1,000,000 miles with flights so far and it is one of the few ARG/US Registrated Brokers, a status granted to audited charter jet firms that have high safety standards.  

Bitlux specializes in medium to large-cabin private jets, with half of its operations conducted overseas or internationally. 

The company accepts the top 10 coins listed on CoinMarketCap, including Bitcoin and Ethereum. Bitlux is not the only company that accepts cryptocurrency as a payment method. Airlines like airBaltic and Vueling accept cryptocurrency as payment for travel. Moreover, Cryptoturismo and Destinia, two aviation-related companies, accept cryptocurrency as payment.

airBaltic's Implementation of Cryptocurrency

airBaltic was the world's first airline to accept Bitcoin as payment for its tickets, covering its 60 destinations in Europe and the Middle East. According to a news release shared on July 22, 2014, Martin Gauss, airBaltic's Chief Executive Officer, stated that "airBaltic has been ranked among TOP10 most innovative airlines globally. Introducing the Bitcoin payment option is a part of our innovative approach to service with a central focus on our customers." airBaltic accepts the crypto payment method on their website. They teamed up with Bitpay, a third-party processor that converts Bitcoins into Euros.

Impact of Bitcoin and Cryptocurrency Market on Private Jet Companies

Bitcoin was introduced in 2009 and has boomed in popularity and market value since then. It is a secure and discrete option. Some have called Bitcoin and the cryptocurrency market as a "trend" or “overhyped.” However, it has gained more legitimacy over the years. 

The Advantages

It provides privacy and discretion. The purchases and the client's balance are kept private including their identity. Also, the crypto transactions reduce the risk of third-party risks such as, funds frozen or records tracked. The payment can be processed 24/7 and applicable every day of the year with no delay such as traditional transaction times of banks. 

In addition, there are no transactional fees, bank fees, or losses as a result of the exchange to different currencies.

When asked about his stance on cryptocurrency, Bitlux CEO Patel "From my position, I don't think that the use of cryptocurrency in the private jet industry is unique or philosophical." 

Patel mentioned a client who was flying from the Caribbean to Europe and was unable to complete a bank transfer. He accomplished the charter via Bitcoin, solving the issues traditional payment methods create.

Patel also states the advantages of utilizing such a payment method: "I believe that the introduction of crypto in aviation is what aviation is about - being able to provide a level of freedom, security, and control over where you are, and when you are there. The concepts of crypto aren't foreign or unique." 

How AI Will Affect the Private Jet Industry

When asked about AI in the aviation industry, Patel suggests that its primary focus will be on scheduling. "That's going to be communication between consumer and aircraft. It'll be able to understand schedules, not take the place of scheduling but understand schedules." An AI supervisor could be useful in the future to increase the quality of an already refined service.

Also for Bitlux, the CEO mentioned when it could be implemented in their scheduling system: "I see this happening in the next five years. Hopefully, some of our vendors and counterparts will take a step forward in the scheduling aspect." 

However, Patel also expressed concerns about adding AI due to safety concerns. “I think there's a long way to go, mostly because of regulations. I will certainly say that the last place you want to have any kind of issue or mistake is in aviation. That is not a good place for a testing ground.”