Korean Air faces backlash over changes in loyalty program

Korean Air is receiving growing complaints from customers over its envisioned changes to loyalty program. / Korea Times file

By Jun Ji-hye

Korean Air is facing bitter complaints from an increasing number of customers over its plans to change its loyalty program, with critics saying that most of the changes will disadvantage economy passengers and only benefit first-class and business-class passengers.

Some customers are even moving to take group action such as filing a complaint with the Fair Trade Commission (FTC) and submitting a class-action suit.

The national flag carrier announced a plan to revise its SKYPASS membership reward program, Dec. 13, saying it will change how mileage points are saved and utilized, starting in April 2021.

The changes include offering more miles to first-class and prestige-class passengers, while offering fewer points to those who buy tickets at discounted prices.

The carrier also plans to change the standard for charging mileage points from destinations to service distance. This will charge more mileage points for bonus seats of long-haul flights ― for example, a customer will need 90,000 miles to purchase a bonus prestige-class seat on a flight from Incheon to New York under the revision, compared to the current 62,500 miles.

A change in the premium member system, which will take effect in February 2022, is also receiving mounting complaints as the company, which has granted lifetime premium member status to those who fulfil the necessary conditions, will give the status only for a year under the revision.

“Korean Air reflected the international trend in mileage programs and expects customers to accumulate and use their mileage points more rationally,” a Korean Air official said. “We will consistently make up for the weak points of the program to offer more benefits and stable services to customers.”

But the changes do not seem to be welcomed by consumers.

Three lawyers at law firm Taelim said that the changes will significantly reduce benefits given to economy passengers, among others, claiming the planned revision seems to lack fairness.

The law firm said it will help customers file a complaint with the FTC to request the antitrust watchdog to examine whether the changes contain any unfair terms and conditions.

“We are currently collecting participants in the group action through the Angrypeople platform,” said lawyer Kim Dong-woo.

More than 380 customers, as of Monday afternoon, have expressed their intention to participate in the group action led by Taelim in the Angrypeople website, an online platform helping class-action suits.

Law firm Taelim is collecting participants in the group actions to file a complaint with the Fair Trade Commission against Korean Air. / Captured from the Angrypeople website

The law firm said it will take further legal action if the FTC rules changes to the loyalty program unfair.

Local civic group Citizens United for Consumer Sovereignty also issued a statement, saying, “Korean Air's change to its loyalty program will not guarantee the rights of consumers.”