The dad or mum firm of the Alaska’s greatest rural airline has created a cryptocurrency to reward fliers with a digital token that, in line with plans, may quickly be traded on exchanges, as Bitcoin is at the moment.
Officers with Ravn Alaska say the FlyCoin token will serve the aim of a standard airline loyalty program, giving vacationers worth for miles flown. However as they envision it, the cryptocurrency may have broader buying energy and be redeemable for money.
The idea is uncommon within the airline trade, mentioned Lenny Moon, chief government of FlyCoin, a newly created firm and affiliate of Ravn Alaska.
“With this, you might commerce it, get money for it,” mentioned Moon, a former Wall Avenue funding banker. “It doesn’t expire. It’s yours. You personal it.”
Josh Jones, an entrepreneur from Los Angeles and an early pioneer in Bitcoin, is lead investor and chairman of FLOAT Alaska, the dad or mum firm of Ravn Alaska and FlyCoin.
The airline rewards trade is “overdue for a digital transformation,” Jones mentioned in a ready assertion from FlyCoin on Wednesday.
Jones is overseeing the event of FlyCoin, Moon mentioned. FlyCoin just lately raised $33 million from buyers in an early step, Moon mentioned.
Moon was beforehand concerned in different startup corporations together with Payoff, a monetary know-how firm that gives loans to assist individuals repay bank card debt.
The digital forex firm is the newest enterprise pursued by FLOAT Alaska. This yr, the corporate can be planning to launch a brand new worldwide airline, Northern Pacific Airways. The airline will function beforehand retired Boeing 757-200s to fly between Anchorage and Asian and U.S. locations, in line with plans.
FlyCoin tokens can be redeemable for journey with Ravn Alaska and on Northern Pacific Airways, Moon mentioned in an interview.
FlyCoin plans to have the digital tokens accessible for commerce on cryptocurrency exchanges later this yr, broadening its worth, Moon mentioned. Ravn clients at the moment obtain credit score in FlyCoin, although the tokens aren’t but accessible for placement in digital wallets, firm officers mentioned. FlyCoin needs to be totally up and working within the coming months, they mentioned.
The mileage program that at the moment exists with Ravn’s accomplice, Alaska Airways, may also live on after that time.
One of many advantages of FlyCoin is that it may well probably rise in worth, Moon mentioned. It may, after all, additionally lose worth, he mentioned. Vacationers may have the choice to money it out shortly after they obtain it, or maintain it in hope that it rises.
Folks may have an choice by means of Ravn to transform it to a voucher instantly, in the event that they don’t wish to take care of any fluctuation in worth, Moon mentioned. The plan is to have agreements with accomplice corporations, corresponding to at resorts, to make sure FlyCoins will all the time keep a minimum of a minimal worth for redemption of two cents per token, Moon mentioned.
Moon mentioned cryptocurrency is rising in use, and airline clients need extra flexibility with their mileage packages.
“We’re sitting at this intersection the place it is smart that rewards may convert to cryptocurrency the place it’s tradeable on an trade,” he mentioned.