Etihad selling silver elite status via NFTs

Looking for Silver Elite status in the Etihad Guest loyalty program? It can be yours for just $349+tax, as part of the carrier’s initial foray into the Web3 world and NFTs.

The airline will sell up to 2003 NFTs as part of the program. In addition to the Silver Elite status, ten holders will also win free tickets to Abu Dhabi.

We’re excited to launch our first NFT collection, EY-ZERO1, which not only offers collectors, aviation enthusiasts and travelers a unique work of art, but provides real-world travel and lifestyle benefits with Etihad Airways.

– Tony Douglas, Group Chief Executive Officer, Etihad Aviation Group. 

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Less fungible than you’d think

One of the key selling points of NFTs is that the token holds certain rights and access to benefits. And consumers can freely trade the tokens to transfer those rights.

In this case, however, Etihad chose to separate the elite status from the token ownership. While a buyer can resell the token, the elite status grant is non-transferable. This is different from the approach airBaltic plans to take with its pivot to a tokenized loyalty program.

Any of the NFTs not sold in the first 28 days will be destroyed, further limiting the pool available. Members of the Etihad Guest program can choose to buy the NFT (and associated status) starting at 49,900 points rather than paying the $349+tax.

And for those who really don’t want to buy in, the carrier is giving away 20 of the NFTs to people who pre-register on the site.

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A bit of greenwashing, too

On the plus side, the Etihad NFTs will deploy on the Polygon blockchain rather than the more common (and much less environmentally friendly) Ethereum chain. Still, the overall impact of the collection is net negative.

Etihad Group CEO Tony Douglas says the collections is “designed to be as efficient as possible and support our wider sustainability and decarbonization efforts.” To that end, the company says it will purchase carbon offsets to cover the energy consumed in generating and selling the NFTs. Etihad also says it will allocate all proceeds from the offering towards the purchase of sustainable aviation fuels (SAFs) to reduce emissions on its flights.

Indeed, the company pitches the NFT offering as “directly helping Etihad in its journey to increase its uptake of sustainable aviation fuel.” Choosing to convert the profits of increased emissions into SAFs is a most circuitous way to get to reducing emissions.

But it seems to be the sort of approach some airlines think is cool these days.

Another blockchain solution in search of a problem

In the release accompanying the NFT launch Douglas says “NFTs and other metaverse technologies are revolutionizing the digital economy.” Few other details are offered on that front.

Similarly, the company offers no explanation as to why it chose to run this promotion via a blockchain rather than simply selling elite status and raffling off some tickets to those willing to buy.

In short, it appears to be another example of an airline choosing the shiny new thing, even if the new technology does not address any real consumer need nor change the way the benefits are delivered.