Korean Air, Asiana Mileage Plan Rejected by Regulator
South Korea’s Fair Trade Commission has rejected the proposed mileage integration plan submitted by Korean Air Lines and Asiana Airlines, raising concerns about insufficient information and potential negative effects on consumers. The decision, announced on June 12, 2025, puts another obstacle in the long-running merger process between the two airlines, which have been working toward full integration since 2020. According to Yonhap News Agency, the KFTC determined that the submitted plan did not meet the minimum standards required to begin a formal review.
The regulator specifically cited weaknesses in the proposed mileage redemption plan, stating that certain benefits offered under Asiana Airlines’ current loyalty program could be diminished under the proposed new structure. The KFTC expressed dissatisfaction with the mileage integration ratio and indicated that other explanations provided in the submission were too vague to allow for proper evaluation. While the commission declined to disclose the exact details of the plan, it confirmed that it would engage in further discussions with industry experts and stakeholders after the airlines revise their proposal.
A key concern revolves around how Asiana Airlines’ existing miles would be converted into Korean Air miles after the merger. Although initial reports suggest that flight miles may be exchanged at a 1:1 ratio, miles earned through credit card spending and other partner programs may receive a lower conversion value due to differing calculation methods. This has triggered concerns that frequent flyers could lose value on miles they have accumulated through non-flight activities.
The KFTC has asked Korean Air to revise and resubmit its mileage integration proposal. The loyalty program plan is one of the conditions required by the KFTC for full approval of the merger, and the regulator’s rejection will likely delay the integration process beyond the previously targeted completion date of October 2026.
The merger between Korean Air and Asiana Airlines has been in progress for several years. In November 2020, Korean Air agreed to acquire a controlling stake in Asiana, with the goal of creating one of the world’s largest airlines by fleet size. The KFTC approved Korean Air’s purchase of a 63.88% stake in February 2022, and the acquisition was finalized in December 2024. Asiana now operates as a subsidiary of Korean Air while the full corporate integration continues to advance in stages.
Concerns about loyalty program mergers are not new in the airline industry. A notable example occurred in 2010, when United Airlines merged with Continental Airlines. Their loyalty programs, United MileagePlus and Continental OnePass, were combined into a single MileagePlus program. While flight miles were converted on a 1:1 basis, some frequent Continental flyers criticized the changes for offering fewer upgrade opportunities and less favorable elite status benefits.
The KFTC’s rejection underscores the importance regulators place on protecting consumer interests in airline mergers, particularly when it comes to the value and usability of loyalty program miles. As Korean Air works to revise its proposal, frequent flyers and industry observers alike will be watching closely to see how the new plan addresses these concerns and whether it can secure the necessary regulatory approval.
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