Seoul: South Korea's antitrust regulator has announced the rejection of a proposed mileage integration plan submitted by Korean Air Lines Co. and Asiana Airlines Inc., raising concerns over insufficient details and potential consumer benefits.
According to Yonhap News Agency, the Fair Trade Commission (FTC) stated that the plan, submitted as part of the airlines' broader merger strategy, did not meet the necessary standards to proceed with a formal review. The FTC highlighted shortcomings in the proposed mileage redemption plan when compared to what Asiana Airlines had previously offered. The proposed mileage integration ratio and other explanations were deemed insufficient for a full assessment.
The FTC has requested that Korean Air revise and supplement the proposal before resubmission. While the regulator declined to disclose specifics of the proposal, it indicated plans to hold consultations with stakeholders and experts after necessary revisions are made.
Public interest has been particularly focused on the mileage integration ratio, a central element of the proposal. Flight miles, which can be earned through travel, credit card spending, hotel partnerships, and other activities, are a significant concern for consumers.
The backdrop of this proposal is Korean Air's acquisition deal, signed in November 2020, to gain a controlling stake in Asiana Airlines. The merger aims to create the world's 10th-largest airline by fleet size. Together, the two carriers control 40 percent of passenger and cargo slots at Incheon International Airport, South Korea's primary gateway.