Too Good To Be True? The Promise Of airBaltic’s NFTs

The upfront cost and benefits of acquiring a Planie

As it stands, the cost of a Planie is tied to the price of the cryptocurrency known as Ethereum. Currently, these are being sold at a cost of 0.075 ETH, plus an “Ethereum gas fee.” Thus, at the time of this article’s publication, “Minting” (buying) a Planie direct from the airline will cost about $178.

So a one-time purchase valued at around $180 will earn 20 points per day. Over the span of a year, the holder would then receive 7,300 points. For reference, a direct, one-way flight within the Baltics (and southern Finland) can be purchased with 4,000 points while a flight within Region 2 (Poland, the Baltics and Nordic countries, minus Iceland) costs 5,000 points.

Photo: airBaltic

Additionally, with airBaltic allowing (and perhaps encouraging) the ownership of multiple Planies, an owner of two would earn 40 points per day (14,600 annually), and 60 points per day for three (21,900). Thus, it seems like a worthwhile one-time investment, if the offer of points continues years into the future. Indeed, one could theoretically earn back their initial monetary investment with free flights after a few years. Even better is the fact that the airline says that “Club points can cover the flight ticket costs (fare, fuel surcharge, airport taxes and ticketing service fee),”

The muddled process of buying in to the program

Intrigued by the benefits offered from holding a Planie, I tried it myself. Personally, not owning any cryptocurrency, the process was a bit of an ordeal. While purchasing a Planie (minting) was the easy part, ‘staking’ it – connecting it to my airBaltic loyalty account – was a little more complicated. Broadly speaking, these are the steps required to reach the end goal of linking a Planie NFT to an airBaltic Club account.

1. Mint (buy) a Planie
2. Register for an airBaltic Club account (if you don’t already have one)
3. Register for a cryptocurrency wallet. This is not affiliated with airBaltic and if you’re new to the world of crypto, you’ll need to research what works best for you.
4. “Export” the Planie to your wallet.
5. And finally, use the website mint.planiesnft.com/stake to connect your wallet to an airBaltic Club account.

Photo: airBaltic

As someone who didn’t fully understand all the steps, it was a frustrating journey. However, once the process is conquered, subsequent Planie purchases come much more easily.

With all of this said, it’s clear that buying into the program will require some knowledge of crypto and a bit of technological competency. Thus, the chances of your grandparents collecting Planies is lower – though not impossible.

Too good to be true?

The offer of 20 points per day per Planie, for a hypothetically unlimited time, sounds quite appealing. This is especially the case for someone able and willing to “go big” a purchase a number of these NFTs. For example, if someone buys 50 Planies – currently valued around $9,000, does this mean that they would earn 1,000 points per day and could thus fly airBaltic for free every one or two weeks? Forever? It sounds pretty great! It’s even better when you add airBaltic’s current offer of elite VIP status by holding 25 Planies.

In some ways, this sounds almost like American Airlines’ AAirPass. The lifetime version of the flight pass, available at a cost of $250,000 in 1981, would provide unlimited first-class travel for life. Today, in 2023, that’s equivalent to around $830,000. Notably, however, American Airlines ended the offer of this special pass, as it eventually became a loss-maker – particularly due to those who abused (or ‘made the most’) of their AAirpasses.

In some ways, the benefits that come with Planies sound too good to be true – especially for those who travel regularly in and out of the Baltics. So what does the airline get from this?

What the airline gets in return

So what does airBaltic get in aggregate? Well, if the price of Planies were to remain constant, airBaltic would theoretically earn close to two million from selling all 10,000 Planies. However, the price would almost certainly increase in the future, as fewer Planies become available, and we get closer to all 10,000 being sold.

But it’s not just selling 10,000 NFTs and deciding what to do with the few million dollars. As NFTs, the idea is that Planies would be purchased and sold on the secondary market as well. With this, the airline’s Terms and Conditions notes that it will receive 7.5% of every Secondary Sale of a Planies NFT. Thus, if Planies become popular collectors items, which also become more valuable over time, then the airline could see a steady income stream from people buying and selling these items.

Photo: airBaltic

When it comes to issuing airBaltic Club points, it’s clear that the airline is on the hook for all the rewards that can be purchased. However, not every Planie-holder will travel alone, and might want to take a trip with a friend or family member. Thus, the airline could see more passengers traveling with airBaltic as they accompany airBaltic Club members redeeming their points.

The major risk associated with all of this is the price of Ethereum and whether it becomes more or less valuable in the future. While the cryptocurrency is significantly down from its November 2021 peak, its value has doubled since the start of the year.

But what are your thoughts on airBaltic’s Planie NFT offerings? Is it something that you think is worth buying into? Share your thoughts by leaving a comment!