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Korean Air-Asiana Merger: Why Mileage Plan Revision Raises Questions

South Korea's antitrust watchdog has told Korean Air to revise its mileage plan for merging with Asiana Airlines. The airline has one month to submit a more detailed strategy, focusing on bonus seats and upgrades. The regulator emphasized that the integration is a national interest issue and must satisfy all consumers. This follows the finalization of Korean Air's acquisition of Asiana after a lengthy international review process.

Key Points: Korean Air Ordered to Revise Asiana Merger Mileage Plan

  • FTC instructs Korean Air to submit a more detailed integration plan within one month
  • Asiana mileage remains usable for 10 years after operations cease
  • Flight-earned miles convert 1:1, but partner miles convert at a 1:0.82 ratio
  • The order aims to provide practical options to prevent mileage expiration
2 min read

Regulator orders Korean Air to revise mileage plan in Asiana merger

South Korea's antitrust regulator orders Korean Air to submit a revised, detailed mileage integration plan for Asiana customers within one month.

"Mileage integration is a matter of nationwide interest, and the plan must meet public expectations. - Fair Trade Commission (FTC)"

Seoul, Dec 22

The antitrust regulator said on Monday it has instructed the country's flag carrier Korean Air to revise its mileage integration plan as part of its merger with Asiana Airlines.

Korean Air has been notified to submit a more detailed plan within one month, including measures for the use of bonus seats and seat upgrade services, according to the Fair Trade Commission (FTC), reports Yonhap news agency.

Under the plan approved in September, Asiana customers will be able to use the mileage they have accumulated for 10 years after Asiana ceases operations, maintaining its current value without needing to take additional action.

Flight-earned mileage can be used at a 1:1 ratio for Korean Air tickets and upgrades, while mileage earned through partners, such as credit card spending or hotel programs, will convert at a 1:0.82 ratio. Customers may also opt to convert their Asiana mileage entirely into Korean Air mileage.

"Mileage integration is a matter of nationwide interest, and the plan must meet public expectations," the FTC said in a press release on Monday, adding that the revised plan should be carefully reviewed to ensure it ultimately satisfies all airline consumers.

The commission said the latest order aims to provide practical options for customers to actively use their mileage, especially since a significant portion of mileage could otherwise expire.

The 1:1 conversion rate for flight-earned mileage is reportedly not considered problematic.

In November 2020, Korean Air signed a deal to acquire a controlling stake in Asiana Airlines, and the acquisition was finalised in December 2024 following a years-long review process by international competition authorities.

Asiana Airlines is currently operated as a Korean Air subsidiary. The companies are undergoing organisational, personnel and branding integration, which is expected to last over a year.

- IANS

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Reader Comments

P
Priya S
As someone who travels to Seoul for work, this merger has been a long time coming. Glad they're giving 10 years to use Asiana miles—that's quite generous compared to some airline policies I've seen in India.
R
Rohit P
Interesting to see how other countries handle airline mergers. Our regulators could learn a thing or two about protecting consumer interests from this FTC order. The focus on "practical options" is key.
S
Sarah B
The 1:1 ratio for flight miles is fair, but that 0.82 conversion for credit card points will hurt. Many people accumulate miles mostly through spending, not flying. Hope the revised plan addresses this imbalance.
V
Vikram M
Mergers always create uncertainty for customers. At least they are being transparent about the process. "A matter of nationwide interest" – wish our consumer issues got that level of attention!
M
Michael C
Four years from deal to finalization shows how complex airline mergers are. The branding integration taking over a year makes sense—you can't change livery and customer perception overnight.

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