Seoul: South Korea's antitrust regulator announced that it has rejected a proposed mileage integration plan submitted by Korean Air Lines Co. and Asiana Airlines Inc., due to concerns over insufficient details and consumer benefits. The Fair Trade Commission (FTC) indicated that the plan, which was part of the carriers' broader merger strategy, did not meet the necessary standards for a formal review.
According to Yonhap News Agency, the FTC highlighted shortcomings in the proposed mileage redemption plan compared to what Asiana Airlines previously offered. The commission found the submission inadequate, particularly regarding the proposed mileage integration ratio, and requested Korean Air to revise and supplement the proposal before resubmitting it. While the FTC chose not to disclose specific details of the proposal, it is considering consultations with stakeholders and experts after revisions are made.
Public interest has been centered around the mileage integration ratio, a crucial aspect of the plan. Flight miles are accumulated through actual travel or via credit card spending, hotel partnerships, and other non-flight activities. Industry observers anticipated that miles accrued from flights would likely be integrated on a one-to-one basis, whereas miles from credit card usage and other affiliated services might not be convertible at the same ratio due to their varying valuations. Currently, Asiana miles are estimated to have a market value of about 70 percent of Korean Air miles.
Korean Air signed a deal in November 2020 to acquire a controlling stake in Asiana Airlines, aiming to create the world's 10th-largest airline by fleet size. The two carriers, which provide full-service operations, account for a combined 40 percent of passenger and cargo slots at Incheon International Airport, South Korea's primary gateway. The acquisition process concluded in December 2024 after a lengthy four-year review by international competition authorities.
Asiana Airlines is now operated as a subsidiary of Korean Air. The companies are in the process of organizational, personnel, and branding integration, expected to continue for over a year. Korean Air confirmed that it submitted its mileage integration proposal to the FTC and intends to maintain close communication with the regulator. "While specific details cannot be shared at this stage, we remain committed to delivering a plan that meets customer expectations," the company stated.