Asiana passengers can use mileage on Korean Air for 10 years

A plane operated by Korean Air, top, along with an Asiana Airlines passenger jet are seen at Gimpo International Airport in western Seoul, Aug. 12. Yonhap

A plane operated by Korean Air, top, along with an Asiana Airlines passenger jet are seen at Gimpo International Airport in western Seoul, Aug. 12. Yonhap

FTC approves mileage integration plan with customer benefit protections

Asiana Airlines passengers will be able to keep their existing mileage and use it on Korean Air-operated flights for 10 years after the two airlines merge, under a mileage integration plan approved by Korea’s antitrust regulator Monday.

The Fair Trade Commission (FTC) approved Korean Air’s revised plan with conditions aimed at preserving customer benefits and expanding opportunities to redeem mileage following the carriers’ merger on Dec. 17.

Under the plan, Asiana mileage will be managed separately for 10 years from the merger date, even after Asiana ceases to exist as a corporate entity. Customers will not have to immediately convert their Asiana mileage to Korean Air’s program.

During the 10-year period, Asiana customers will retain the airline’s existing redemption standards and expiration rules. They will also be able to use their mileage across all Korean Air-operated routes for award tickets, seat upgrades, mileage-and-cash payments and shopping.

Customers who choose to convert their Asiana mileage can do so at any time during the 10-year period. Flight-earned mileage will be converted at a 1-to-1 rate, while miles earned through credit cards and other partnerships will be converted at a rate of 0.82 Korean Air miles for each Asiana mile.

Customers must convert their entire mileage balance if they choose to switch to Korean Air’s program. Any remaining Asiana miles will be automatically converted at the same rates when the 10-year separate-management period ends.

A promotional image for Standard Chartered Bank Korea's new deposit account in collaboration with Korean Air to convert after-tax interest at maturity to mileage for the airline. Courtesy Standard Chartered Bank Korea

The plan also preserves Asiana’s elite membership benefits. Its five existing membership tiers will be matched with corresponding Korean Air tiers after the merger. Customers who convert their mileage will have their combined mileage reassessed and may receive a higher tier if they qualify.

The FTC placed particular emphasis on expanding award-seat availability, which it identified as the most frequently used mileage benefit.

Korean Air must maintain award-seat passenger performance for the next decade at or above the combined level recorded by the two carriers in 2024. For popular long-haul routes to the Americas, Europe and Oceania, Korean Air now must meet a new higher benchmark — the highest combined award-seat passenger performance recorded over the past 10 years, which was reached in 2023.

Korean Air said it may add special mileage flights during peak travel periods and on high-demand routes if necessary to meet the requirement. The carrier must also report peak-season award-seat availability annually to an implementation monitoring committee.

The plan further requires Korean Air to increase annual mileage redemption volumes in stages. Based on the two airlines’ combined redemption volume in 2025, annual mileage usage must reach 106 percent in 2027 and 2028, 112 percent in 2029 and 121 percent from 2030 through 2036.

In addition, the minimum mileage required for mileage-and-cash payments will fall from 500 to 100 miles, while the maximum share of an airfare payable with miles will rise from 30 percent to 40 percent. Korean Air will also double the number of nonflight products available for fewer than 2,000 miles.

The FTC’s approval came nearly two years after it conditionally cleared Korean Air’s acquisition of Asiana. Under the original remedy package, Korean Air was required to submit a mileage integration proposal within six months of completing the acquisition on Dec. 12, 2024, and obtain regulatory approval before implementing it.

Korean Air submitted its final proposal to the FTC on Sept. 1 after seven meetings with the regulator and four rounds of revisions.

The FTC will monitor compliance through an implementation monitoring committee for 10 years after the merger. Korean Air and Asiana are expected to provide customers with detailed guidance on mileage use and conversion before the plan takes effect.

Interesting contents

Taboola 후원링크

Recommended Contents For You

Taboola 후원링크