Invest in Zephyr Aerospace Stock to Forever Change Air Travel

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Although I’ve covered several potentially groundbreaking equity crowdfunding opportunities, none of them have personally resonated with me. Nothing against them at all – I just happen not to be a target customer. But Zephyr Aerospace is a completely different story. Indeed, I’d bet that this solution will have almost universal sentiment backing. And that’s why many people will likely inquire about how to invest in Zephyr Aerospace stock.

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If you had to summarize Zephyr into one word, it’s democratization. And for once, such lofty aspirations are much more than the usual corporate fluff. Zephyr proposes a radical rethink on air travel. Specifically, the company has created a unique lie-flat seating arrangement for economy class passengers that is both pioneering and incredibly relevant for our new normal.

Making use of vertical spacing, Zephyr’s seating arrangements facilitate the same passenger density that airliners already utilize. And because of the top-bottom seating format, a full-sized adult can easily lie prone. As well, each compartment is cordoned off with physical barriers. Thus, you won’t have to worry about someone’s stinky feet resting on your head.

As a result, you are naturally practicing social distancing while allowing you to sleep in a comfortable, prone position. For those who have take long-haul trips, you know how valuable this is. And that’s why many will ask how to invest in Zephyr Aerospace stock. In my firm opinion, this is an innovation that we’ve been begging for. Finally, someone has brought this solution to fruition.

Moreover, it couldn’t have come at a better time, with airliners facing an unprecedented crisis due to the novel coronavirus.

Invest in Zephyr Aerospace Stock to Make Flying Great Again

In Zephyr’s video presentation, founder Jeffrey O’Neill mentioned the golden age of flying. Back then, people dressed up to fly. Now, traveling by air can be one of the most stressful experiences. Of course, that’s more of a concern today with the pandemic.

Moreover, the airliners are feeling the pain. Though air travel demand has grown substantially since its March and April lows, volume is still down 70% or more. Though other contributing factors exist, clearly, people are concerned about being crammed in with hundreds of other passengers.

As I stated above, however, Zephyr’s seating compartments allow for easy passenger separation while maintaining density. Therefore, it’s a win-win for customers and airliners, bolstering the case to invest in Zephyr Aerospace stock.

Beyond the pandemic, the company’s innovations will be much needed. As Zephyr points out in its marketing pitch on private investing platform Republic.co, economy class seats haven’t changed since the 1970s: they’re uncomfortable and in some cases may be detrimental to your health.

However, business class is prohibitively expensive. According to Zephyr’s research, a long-haul flight can have a 700% pricing gap between economy and business class. To pay that much of a premium for a temporary use of a seat is ridiculous to most.

And that’s really what passengers are paying for. In a study management conducted, 70% of airline customers would trade perks, such as in-flight meals, lounge access and extra baggage allowance, to be able to lie flat and sleep. Through the company’s innovative platform, it’s giving what most passengers want.

In the present circumstance and in the airline industry’s rebuilding phase post-pandemic, no one will be able to ignore the customer. This is another key reason to invest in Zephyr Aerospace stock.

Watch Out for Possible Turbulence

As I said, Zephyr is the one equity crowdfunding opportunity that I’m truly excited about. Even if I don’t invest in Zephyr Aerospace stock, I genuinely want the underlying company to succeed. This may be the most important customer-centric invention to come out this decade.

However, all investments carry risk. As I’ve mentioned with other equity crowdfunding plays, private investing in general is riskier than buying publicly traded stocks. Primarily, you’re not dealing with a known commodity. For those that want as much information as possible, this sector admittedly isn’t that helpful.

Also, private investing usually involves tying up your capital. So, if you choose to invest in Zephyr Aerospace stock, you should know ahead of time that no secondary market exists for the shares. In addition, one may never materialize.

On the business aspect, my biggest concern is cannibalization. As Zephyr’s research demonstrated, most passengers are rational. In other words, they prefer the ability to sleep rather than “ineffective” benefits, such as in-flight meals (our taste buds lose their sensitivity at high altitude so in-flight meals aren’t as great of an economic benefit).

If we follow the logic, democratizing lie-flat seating for economy class may translate to fewer (or no) business class purchases. Unfortunately, that would be a huge revenue suck for airliners.

Let’s assume a 180-seat airplane, with 24 seats in business class, 48 in economy-plus, and 108 in economy. If we conservatively estimate a 300% gap between business and economy pricing, the 24 seats in business would account for 37% of sales.

Airplane seating chart
Click to Enlarge
Source: Chart by Josh Enomoto

If we used Zephyr’s gap of 700%, it may become a non-starter for some airliners. The loss of business class passengers would be detrimental to the bottom line.

Innovation Won’t Wait

Though the cannibalization issue is troubling – if everyone gets to sleep, why pay such a premium? – ultimately, Zephyr’s solution is incredibly useful and pertinent across several angles. And in this case, innovation probably won’t wait, incentivizing the decision to invest in Zephyr Aerospace stock.

If you want to advantage this paradigm-shattering equity crowdfunding opportunity, the minimum investment is $100. Further, the deadline is Oct. 9, 2020.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he did not hold a position in any of the aforementioned securities.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.


Article printed from InvestorPlace Media, https://investorplace.com/2020/08/invest-in-zephyr-aerospace-stock-to-forever-change-air-travel/.

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