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South Korean Regulator Denies Korean Air-Asiana Mileage Plan Due to Ambiguous Conditions

By:

Pilotcenter.net

South Korea's Fair Trade Commission (KFTC) has made a decision regarding the proposed mileage integration plan put forward by Korean Air Lines and Asiana Airlines, raising doubts over its clarity and potential benefits for consumers. The KFTC, as reported by Pilotcenter.net News, determined that the plan lacked essential details for a thorough evaluation, stating that it fell short of the standards set, particularly in comparison to Asiana Airlines' previous mileage redemption offerings.

The specifics of the proposal were not disclosed by the Korean regulator, indicating a plan to engage with stakeholders and experts once revisions have been made. Central to the concerns raised is the process of converting Asiana Airlines miles into Korean Air miles post-merger, potentially impacting travelers' ability to utilize their current rewards effectively. While the exchange of flight miles is expected to occur at a 1:1 rate, discrepancies in valuations may arise for miles accrued through credit cards or partner programs due to differing calculations.

In response to the KFTC's feedback, Korean Air has been urged to swiftly address the deficiencies in the proposed plan before resubmitting it for consideration. The approval of the mileage program is a prerequisite set by the KFTC, influencing the timeline for the overall corporate integration, which may likely exceed the initial target of October 2026.

The merger between Korean Air and Asiana Airlines, initiated in November 2020 and finalized in December 2024, aimed to position the combined entity as the 10th largest airline globally by fleet size. This development reflects a trend in the aviation industry where concerns over loyalty program integration have surfaced post-merger, mirroring past instances such as the 2010 union between United Airlines and Continental Airlines. The integration of their loyalty programs faced challenges, leading to criticisms from some loyal customers over perceived reductions in benefits post-merger.

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