Should Korean Air Revise Its Mileage Plan Amid Asiana Merger?
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Synopsis
Korean Air faces a mandate from the FTC to revise its mileage integration strategy with Asiana Airlines, a move that seeks to ensure customer satisfaction and prevent the expiration of accumulated miles. This significant development in the airline merger process raises questions about the future of loyalty programs in the aviation industry.
Key Takeaways
- Korean Air must revise its mileage integration plan.
- Asiana customers can use their mileage for a decade after the merger.
- Flight-earned mileage converts at a 1:1 ratio.
- Partner-earned mileage has a 1:0.82 ratio.
- The FTC emphasizes consumer rights in airline mergers.
Seoul, Dec 22 (NationPress) — The antitrust authority announced on Monday that it has mandated Korean Air, the nation's flagship airline, to amend its mileage integration strategy as part of its merger with Asiana Airlines.
Korean Air has been directed to provide a more comprehensive proposal within a month, detailing the utilization of bonus seats and seat upgrade options, as reported by the Fair Trade Commission (FTC) through Yonhap news agency.
According to the plan sanctioned in September, Asiana customers will retain the ability to utilize their accumulated mileage for a decade following Asiana's operational cessation, preserving its current value without any required actions.
Mileage acquired through flights can be exchanged at a 1:1 ratio for Korean Air tickets and upgrades, while mileage gained through partnerships—such as credit card expenditures or hotel programs—will convert at a 1:0.82 ratio. Customers also have the option to fully convert their Asiana mileage into Korean Air mileage.
“The integration of mileage is a matter of national concern, and the plan needs to align with public expectations,” stated the FTC in a press release on Monday, emphasizing that the revised plan should undergo thorough scrutiny to ensure it meets the needs of all airline consumers.
The commission highlighted that the recent directive aims to offer practical choices for customers to actively utilize their mileage, particularly as a significant amount of mileage could otherwise lapse.
The 1:1 conversion rate for flight-earned mileage is reportedly not deemed problematic.
In November 2020, Korean Air entered into an agreement to acquire a controlling interest in Asiana Airlines, and the acquisition was finalized in December 2024 after an extended review by international competition bodies.
Asiana Airlines is currently functioning as a subsidiary of Korean Air. The two airlines are undergoing a process of organizational, personnel, and branding integration, which is anticipated to continue for over a year.
Point of View
This significant directive from the FTC highlights the importance of consumer rights in the airline industry. Ensuring that customers can effectively use their accumulated mileage is crucial, especially in the wake of major mergers. The nation's interests must always be prioritized in such corporate integrations.
NationPress
23/12/2025
Frequently Asked Questions
What is the FTC's directive to Korean Air?
The FTC has instructed Korean Air to revise its mileage integration plan as part of its merger with Asiana Airlines to ensure that it meets public expectations.
How will Asiana Airlines customers be affected?
Asiana customers will be able to use their accumulated mileage for ten years after the airline ceases operations, maintaining its value without needing additional action.
What are the conversion rates for mileage?
Flight-earned mileage can be converted at a 1:1 ratio for Korean Air tickets and upgrades, while partner-earned mileage converts at a 1:0.82 ratio.
What is the significance of this revision?
This revision aims to ensure that customers have practical options to use their mileage, reducing the risk of expiration.
When did Korean Air acquire Asiana Airlines?
Korean Air signed the acquisition deal in November 2020, finalizing it in December 2024 after a lengthy review process.
