According to the airline’s officials, the FlyCoin token will function similarly to a traditional airline loyalty program, providing travelers with monetary value for miles flown.

However, the cryptocurrency, as they envision it, will have greater purchasing power and be redeemable for cash, similar to Bitcoin.

Lenny Moon, CEO of FlyCoin, commented that the concept is novel in the airline industry. At least one Asian airline created a cryptocurrency reward program, but its value was limited because it was not a tradeable asset, said Moon.

"You could trade it for cash. It doesn't expire. It's yours; you own it," said Moon.

Josh Jones, chairman of FLOAT Alaska, stated in a prepared statement from FlyCoin that the airline rewards industry is "past due for a digital transformation."

Northern Pacific Airways, a new international airline, also plans to become the first low-cost trans-Pacific airline to offer passenger service on long-haul routes between the United States and Asia via its new Alaska hub. This airline will use previously retired Boeing 757-200s to fly between Anchorage and Asian and US destinations.

Ravn Airline

It was launched in 2020 after FLOAT leadership purchased RavnAir Group's assets out of bankruptcy. The leadership had been working on FLOAT Shuttle, a new Southern California air taxi created as an alternative to Los Angeles rush hour traffic. During the pandemic, the shuttle was grounded.

The airline serves as a vital link between rural Alaska communities and cities such as Anchorage and Fairbanks on their road system.

Moon commented in an interview that the tokens would be redeemable for travel with Ravn Alaska and Northern Pacific Airways. He also stated that company officials are talking with other airlines, hotels, wine clubs, and hospitality firms about becoming cryptocurrency partners. The said token intends to make the digital tokens available for trading on cryptocurrency exchanges later this year, broadening their value.

Customers are currently credited in FlyCoin, though the tokens aren't yet available for use in digital wallets and should be fully operational in the coming months. The current mileage program with Alaska Airlines will continue after that point, as per the company officials.

FlyCoin tokens were created using Ethereum technology, and the tokens will have a fixed supply of 100 billion.

Flights to be converted to Flycoin

Because people can trade mileage rewards on an open market, Chris Gale of Metaedge Ventures, a Los Angeles-based cryptocurrency advisor, believes the idea can prevent mileage rewards from sitting around for years unused.

According to him, cryptocurrency can be confusing for people unfamiliar with it, but the company plans to create an app that will make it simple to use.

The digital asset has the potential to increase in value and of course, it could lose value, so travelers will be able to cash it out immediately or hold it in the hope that it will rise in value, he added.

People can convert it to a voucher right away through Ravn if they do not want to deal with any fluctuations in value. He noted that the plan is to have agreements with partner companies, such as hotels, to ensure that it always has a minimum redemption value of 2 cents per token.

Moon expressed that cryptocurrency is becoming more popular and that airline customers want more flexibility with their mileage programs.

"We're at a crossroads where it makes sense for rewards to convert to cryptocurrency that can be traded on an exchange," he explained.

Source:
https://www.ktoo.org/2022/02/16/ravn-alaska-company-creates-a-cryptocurrency-for-its-mileage-rewards-program/ 

Posted 
Jul 22, 2022
 in 
Digital Lifestyle
 category

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