Northern Pacific Airways is crowdfunding through Wefunder, offering a 20% discount on their current valuation of $280 million for the first $1.5 million of investors.
Perks Include Free Drinks, Flight Vouchers, and Custom Liveries
The unconventional carrier is seeking to earn $5 million from the fundraising round, validating their decision on their business plan. With the first flight projected to launch in the Fall of 2022 after a launch party earlier in 2022, the carrier says their base at Anchorage Ted Stevens International Airport (ANC) and low-cost carrier model gives them a core advantage in operating from across the U.S. to key Asia-Pacific cities.
Northern Pacific cites the success of both Icelandair and Copa Airlines as examples that their plan could work. Both discount airlines operate a hub-and-spoke model connecting passengers from the United States to foreign destinations, pulling in between $1.5 and $2.5 billion per year. With a total addressable market of $20 billion per year in 2019, the airline is confident they can meet their goal of operating 50 aircraft by 2026 and drive value for investors.
If the business plan wasn’t enough, the airline is also offering early flight incentives for those who decide to invest during the crowdfunding campaign. Investors who invest at least $250 will get bonuses when traveling with the carrier, which include:
- Up to $250: Free drinks aboard Northern Pacific flights through 2023
- Up to $999: Northern Pacific and Ravn Air Group Elite 1K status through 2023
- Up to $4,999: $1,000 in Northern Pacific flight vouchers
- Up to $9,999: Invitation to the Northern Pacific North Terminal Launch Party at ANC
- Up to $49,999: $10,000 in Northern Pacific flight vouchers
- Up to $99,999: Northern Pacific and Ravn Elite #1 status through 2025
- Up to $999,999: Name a Ravn De Havilland Dash 8
- $1 million and up: Name a Northern Pacific Boeing 757
- $5 million and up: Create a custom livery for a Northern Pacific airframe
The crowdfunding campaign is currently in the “Friends Invest First” phase, with the public offering beginning on June 8, 2022.
Crowdfunding Latest Unconventional Move by Carrier
Their attempt at crowdfunding is one of the many unconventional approaches to launching an airline taken by the company. In addition to offering a low-cost model to the Asia-Pacific market, the carrier will reward frequent flyers in “FlyCoin,” a cryptocurrency the airline says will be valued for at least $0.02 per coin and redeemable for everything from flights to elite status.
Source: frugal travel guy