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Korean Air cornered over new mileage program
Minister of Land, Infrastructure and Transport Won Hee-ryong / Korea Times file
By Lee Kyung-min
By Lee Kyung-min
Korean Air, the country’s largest carrier, is coming under increasing pressure to revise the new frequent flyer mileage program, cornered by an intensifying scrutiny of the government and the ruling party seeking to court voters frustrated by the recent spike in living costs, market watchers said Sunday.
Flyers criticized the new program for needing far more mileage to travel long distances, since many flyers accrue mileage from short-distance trips to fly to the U.S. or Europe.
The issue is likely to take a political turn. President Yoon Suk Yeol openly criticized the air carrier for neglecting its consumer protection responsibilities. Commercial lenders and telecommunication operators are paying a belated and heavy price in the form of tighter financial and digital market regulations for failing to prioritize consumer protections.
Also amplifying rapidly souring public sentiment is a sustained spike in heating and electricity costs over the past few months, additional expenses that cannot easily be reduced due to the brutal cold of winter.
Yoon said on Feb. 15 that commercial lenders should limit gains due to the widening difference between borrowing and lending rates, and that telecommunication operators should provide more rate-sensitive subscription options.
Ruling party weighs in
Rep. Sung Il-jong of the ruling People Power Party strongly recommended on Feb. 17 that Korean Air promptly revise its new mileage program.
“How can Korean Air deceive consumers like this when they were among the first to receive emergency funds shouldered by taxpayers in the early stages of the COVID-19 pandemic? It should thoroughly revise its program,” he said during the party's policy meeting at the National Assembly.
The remarks were in line with ones made by Minister of Land, Infrastructure and Transport Won Hee-ryong last week.
On his Facebook page, Won said Korean Air is neglecting consumers, despite record-high profits.
For the public, he said, frequent flyer miles are hard to both accrue and use, a reason why many consider them useless.
“Many were unable to use the mileage over the past three years, and the revision is unacceptable to me as the transport authority. President Yoon and I will meet the demands of the public at a level agreeable to us all.”
Korean Air submitted a plan that it had revised in large part to comply with the recent pressure from the government. According to the plan, the ratio of bonus seats will double from the current five percent of the total, and about 100 special flights will be operated from Seoul to New York, Los Angeles and Paris during the peak season this year.