Seoul: Customers of Asiana Airlines Inc. will be able to use their existing mileage at its current value for up to 10 years after the airline merges with Korean Air Co., the antitrust regulator said Tuesday.
According to Yonhap News Agency, mileage integration has been a key issue in the carriers’ merger plan. Their initial proposal on the policy was rejected by the Fair Trade Commission (FTC) in June over consumer benefit concerns and insufficient details. Under the new proposal, Asiana customers can continue to use the mileage they have accumulated for 10 years after Asiana ceases operations, maintaining its current value, without taking any specific actions.
Flight-earned mileage can be used at a 1:1 ratio for Korean Air tickets and upgrades, while mileage earned through partners, such as credit card spending or hotel programs, will convert at 1:0.82. Customers may also choose to convert their Asiana mileage into Korean Air mileage. “The plan is expected to protect consumer rights and ensure no disadvantage to Asiana or Korean Air customers,” an FTC official said.
Public consultation on the plan will run until Oct. 13, and the plan will be finalized through FTC deliberation. The new measure will take effect on the merger date, he added. The market value of Asiana miles is now estimated to be roughly 70 percent of that of Korean Air miles.
In November 2020, Korean Air signed a deal to acquire a controlling stake in Asiana Airlines, and the acquisition was finalized in December 2024 following a yearslong review process by international competition authorities. Asiana Airlines is currently operated as a Korean Air subsidiary. The companies are undergoing organizational, personnel, and branding integration, which is expected to last over a year.
Following the FTC announcement, Korean Air said in a release that the mileage integration scheme was designed to “maximize consumer benefits and ensure a smooth transition for members of both loyalty programs.” “Korean Air remains committed to expanding mileage redemption opportunities and enhancing member benefits across the newly integrated global network.”
Industry watchers in general assessed the scheme positively, crediting the decision as being consumer friendly. “Recognizing Asiana Airlines’ mileage separately for 10 years and maintaining existing membership tiers signals respect for the rights of current customers,” Kim Kwang-ok, a professor of aviation management at Korea Aerospace University, said. Lee Hwi-young, a professor of aviation management at Inha Technical College, echoed the view, saying, “The conversion ratio for flight and partner mileage appears fair and reasonable for both Korean Air and Asiana Airlines passengers.”