How some airlines are getting involved in blockchain, cryptocurrency and NFTs
Late last month, airBaltic presented the Planies, the airline’s latest entry into the world of non-fungible tokens (NFTs). The Latvian airline has placed high expectations on this collection of ethereum-based NFTs depicting a world of friendly-looking cartoon aircraft. This June, 10,000 of them will be issued.
In a conversation with TPG, airBaltic’s CEO Martin Gauss explained how he envisages the Planies becoming a brand in their own right.
At first, Planie ownership will give you access to a number of benefits connected to airBaltic Club, the airline’s loyalty program. By minting a large but limited number of them, airBaltic is aiming to create a community of sorts, like a loyalty program super-tier where membership status doesn’t depend on how often you fly, but rather on Planie ownership.
In terms of scale, the Planies are one step up from airBaltic’s preceding NFT experiment, its Latvian city collection series, which features one of the carrier’s A220s next to an image representative of a Latvian city. First issued in 2021, airBaltic has so far minted 10 series of these NFTs, containing 190 items in total, which are traded on the Opensea marketplace.
In case you were wondering how they are doing … well, at the time of writing the all-time traded volume of 3.26 ETH isn’t exactly moving the needle, financially speaking, for airBaltic. However, according to the airline’s CEO, that is not the point. For Gauss, it's all about being ahead of the curve.
“We see this as part of our ongoing commitment to innovation. More than a decade ago we were first to see the potential of what was then a state-of-the-art, clean-sheet aircraft project, what is now the Airbus A220," he said.
"We currently see blockchain and its multiple applications, including NFTs, as a great tool to learn and to develop new capabilities,” he explained, before highlighting how the airline likes to stay on top of every potentially disruptive technology.
To give credit where it’s due, airBaltic was the first airline to accept payments in cryptocurrency back in 2014, and it continues to do so to this day. It now accepts other coins such as Ether and Dogecoin, although it doesn’t hold them but instead converts the proceeds after the sale.
Despite some anecdotal data pointing to the contrary — for example, in 2020, private jet broker PrivateFly said nearly 20% of its bookings were being paid in Bitcoin (hard to tell whether this is still the case, since PrivateFly no longer discloses revenue information) — the fact is that in the airline industry, ticket payments in cryptocurrency remain the exception rather than the rule.
Even for an early adopter such as airBaltic, these don’t seem to amount to anything more than “a few transactions a week” confirmed Gauss.
This hasn’t discouraged a growing number of airlines from entering this space, well aware that there is more to blockchain technology than cryptocurrencies.
Emirates is even repurposing one of the pavilions at Dubai’s recently closed Expo to create a center for technological experimentation, in which blockchain applications will share the spotlight with the other big current tech themes, metaverse and Web3.
In addition to airBaltic and its Planies, a handful of other airlines are experimenting with the introduction of blockchain technology in their loyalty programs.
Related: Airlines and travel agencies that accept Bitcoin for payment
Air Asia was one of the first to jump on the crypto bandwagon with its BigCoin tokens, but four years after its launch, little is known about the performance of this initiative. There's no mention of BigCoin on the airline’s website (despite its rather comprehensive section dedicated to its “BIG” rewards program). Sources at Air Asia declined to comment on this matter when contacted.
Singapore Airlines, in contrast, has been enhancing and expanding its blockchain-based rewards project, which links KrisFlyer frequent flyer accounts to a KrisPay wallet with a revamped wallet called Kris+.
In the U.S., the same investors that have backed the launch of the new Northern Pacific Airways and the re-launch of Ravn Alaska are rolling out Flycoin, an ethereum-based rewards program, not just for these two airlines, but for any other travel operator that would like to join.
The ability of blockchain technology to provide a trusted verification ledger for all sorts of transactions extends to more mundane, behind-the-scenes processes. It's in areas such as aircraft refueling or ticket distribution that smart contracts may already be starting to prove their worth.
In 2021, Gazpromneft-Aero, the jet fuel subsidiary of Russian government-owned energy firm Gazprom, announced the rollout of a blockchain-based smart contract program for aviation fuel supply. This pioneering technology, which facilitates instant payments between airlines and fuel suppliers by eliminating red tape, has since been used to fuel about a hundred domestic flights by Russian airline SmartAvia.
Related: You can now redeem points for crypto-but you may not want to
During its development stages, Gazpromneft-Aero also partnered with S7 Airlines, another airline that's no stranger to blockchain technology. In 2019, Russia’s largest private carrier launched a ticketing platform for travel agents based on blockchain.
Just as in the fuel distribution, it's another area in which smart contracts help the parties settle transactions more efficiently. Some new players have sprung up in this field, such as Winding Tree, an ethereum startup that has been helping airlines such as American Airlines and Lufthansa make their flight inventory available to third parties in a decentralized way.
So far, these involve transactions between corporate operators, but “there is no reason the whole travel-ID process couldn’t be smarter,” said airBaltic’s Gauss when asked about the sort of things the airline’s in-house tech team is looking into.
In Spain, and while it awaits the resolution of the IAG acquisition imbroglio, Air Europa has already come up with what it claims is the first ticket ever in NFT format, the “NFTicket,” launched in partnership with tech firm TravelX.
Buying one of the 10 curated works, each by a different artist, will get you a business class ticket on Air Europa’s November 29 flight to Miami, just ahead of Art Basel, as well as access to several perks and activities connected to the renowned art fair. The NFT will still need to be presented at the airport’s check-in counter so that the corresponding tickets can be issued.
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| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
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- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.