Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Korean Air proposes 10-year validity for Asiana mileage after merger
A Korean Air flight prepares to take off at Incheon International Airport, Sept. 10. Joint Press Corps
By Nam Hyun-woo
Korean Air is planning to allow customers to use Asiana Airlines mileage for the next 10 years after the carriers’ scheduled merger, under an antitrust proposal aimed at easing concerns over fairness among customers.
It also suggested converting Asiana Airlines mileage into Korean Air points at a 1-to-1 ratio for flight miles, and at 0.82 points per Asiana mile for partner programs such as credit card rewards. However, the plan did not address consumer complaints calling for an expansion of Korean Air’s mileage redemption options.
The country’s Fair Trade Commission (FTC) said Tuesday it will collect public opinions on Korean Air’s proposed plan to integrate the two carriers’ mileage programs over the next two weeks.
When it approved the merger between Korean Air and Asiana Airlines in 2022, the FTC ordered Korean Air to submit its integration plan by June 12 this year, but immediately rejected a draft citing concerns that the plan may harm the interest of Asiana’s customers.
At the time, the FTC said the integration plan should prevent any disadvantages and ensure a fair balance of the rights of both Korean Air and Asiana customers. While revealing Korean Air’s proposal this time, the regulator said the proposal was in line with those principles, meaning this will likely be the final plan unless there is serious consumer backlash.
In the latest plan, Korean Air proposed to maintain Asiana’s mileage program for 10 years after the merger. Under this policy, Asiana mileage points can be used as usual until the merger is completed, and will remain valid for Korean Air flights even after the Asiana entity is dissolved.
Regarding the conversion ratio, Korean Air decided to apply a 1-to-1 ratio for points earned from flights, while setting its affiliated mileage points at a more favorable value compared to Asiana’s, reflecting their market worth. Currently, one Korean Air mile is valued at around 14 to 16 won, while that of Asiana is valued at about 11 to 12 won.
In its rejected proposal, Korean Air reportedly valued one Asiana mileage point at 0.7 of a Korean Air mile. In the latest version, however, the carrier set a slightly higher value of 0.82 in an effort to strike a balance between the interests of both airlines’ customers.
The FTC said it will collect public opinions on the proposal through Oct. 13. After its review, the commission will finalize the integration plan, which will take effect from the date of the merger.
Korean Air plans to finish merging its corporate culture by October 2026 and launch a converged entity that will operate with an updated corporate identity.