Why Korean Air, Asiana Airlines in rush to shed unused mileage points


South Korea's leading airlines, Korean Air and Asiana Airlines, are making efforts to help their passengers utilize their accumulated mileage points as they prepare for their upcoming merger. Korean Air has formed a partnership with GS Retail, enabling customers to redeem their points at GS25 convenience stores, while Asiana Airlines plans to launch an online shopping platform specifically for mileage point redemption. The COVID-19 pandemic led to a surge in unused mileage points due to travel disruptions, prompting both airlines to extend the expiration dates for these points. The total amount of unused mileage points for the two airlines has reached 3.5 trillion won ($2.6 billion) in recent years, with Korean Air's deferred income reaching 2.52 trillion won and Asiana Airlines experiencing a nearly 40 percent increase to 975.8 billion won. With concerns about potential changes in the value of these points post-merger, both airlines have assured their customers that their mileage management systems will not see immediate changes for at least two years following the merger. However, there are apprehensions about potential dissatisfaction among consumers, particularly regarding the differing cost of mileage between the two airlines. Despite ongoing discussions and the need for regulatory review, the airlines are intent on protecting consumer rights during the merger process.


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