I've transferred almost 1M miles into Etihad over the past couple of years.
Here is what most people don't understand.
- Forget 'classic awards' as you compete against millions of others. It blows my mind how set in stone so many people are on redeeming the lowest possible cost redemption while ignoring loads of other opportunities.
- The value in Etihad redemptions is in cash+miles.
- A 'good' redemption on Etihad will be worth around $0.02 - $0.03 per mile.
- Etihad cash+miles are treated like cash tickets, meaning you will earn miles/SC on those tickets (unlike other ME airlines where cash+miles tickets are more or less treated like redemptions that don't earn anything).
- Combine redemption with elite status (Australians can do a status match), to multiply the earnings, and thus, increase the overall value per mile.
- Unlike other FFP's, with Etihad you can spend your points out via Visa Debit card as cash at an effective rate of US $0.0066 (ie: higher than QF for gift cards), and the real benefit of this is that you always have a way to deplete your balance to zero.
There is also a 40% transfer bonus into Etihad currently with many banks globally.
My overall assessment of Etihad and other programs like it - are that once you get over the brainwashing that you MUST ONLY REDEEM MILES FOR CLASSIC AWARDS... the game of frequent flyering becomes much easier.