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When the merger of Korean Air and Asiana Airlines was announced, the combined mileage relationship of the two airlines became a hot topic. Asiana Airlines mileage cardholders are concerned that they will get on Korean Air mileage at a reduced price. Credit card companies recognize the value of Asiana Airlines miles from a minimum of 80% to a maximum of 100% compared to Korean Air.
On the 15th, Kim Sang-do, head of the aviation policy department of the Ministry of Land, Infrastructure and Transport, said: “If (Korean Air and Asiana Airlines) are integrated, the mileage is used together.” Rather, the benefits to the consumer will increase. ”
You can predict the value of Korean Air and Asiana miles with the exchange rate of credit card points and miles. Since points from credit card companies can be converted to cash by recognizing the value of 1 won per point, the value of the miles that the credit card company sees can be converted to cash and compared.
Most credit card companies consider Korean Air miles to be higher than the value of Asiana Airlines miles. The Shinhan card and the Hyundai card see the value of Asiana’s mileage compared to Korean Air’s mileage by 80%, which is the lowest exchange rate among the credit card companies. The Shinhan card is recognized as 25 miles per mile for Korean Air (1 point is 1 won) and 20 points per mile for Asiana Airlines. Hyundai Card also has 25Mpoints and 20Mpoints, respectively, with the same exchange rate as the Shinhan Card.
On the other hand, Asiana’s highest mileage value is the Samsung card. Both Korean Air and Asiana mileage are worth 15 points per mile. The KB Kookmin card has 20 points and 18 points, respectively, which increases the value of Asiana’s mileage after the Samsung card. Lotte Card converts 20 points and 17 points into 1 mile, respectively.
The ratio of Asiana’s mileage to the credit card company’s Korean Air mileage is 1 for the Samsung card, 0.9 for the Kookmin KB card, 0.85 for the Lotte card, and 0.8 for the card. Shinhan-Hyundai.
An industry expert explained: “Since mileage purchase contracts with airlines are different for each card company, there is a difference in the exchange rate.” You can convert points to miles, but you cannot convert miles to points. Points can be converted to cash, because it is impossible to convert airline mileage into other payment methods under the Aviation Industry Law.
The card industry believes that Asiana’s mileage value is above the 80% set by Shinhan and Hyundai Cards. This is because Asiana mileage cannot be used on the Star Alliance that Asiana Airlines has joined. Star Alliance is the largest airline alliance of 26 airlines. Asiana mileage was redeemed on Star Alliance member airlines. This was an advantage over the mileage of Korean Air who subscribed to SkyTeam (19 airlines).
An official from the card industry said: “As Korean Air monopolized the aviation market, the bargaining power grew stronger than before, creating an incentive to see Asiana’s mileage value lower.” . Explained.
There are also observations that the cost of purchasing miles from card companies may increase. Credit card companies pay for air mileage accrued by airline card consumers every month. For example, if a card member named A accumulated 12,000 miles in June, the credit card company must purchase that amount from the airline at the end of each month. The card industry predicts that if the cost of purchasing miles increases, which airlines require from credit card companies, the card’s mileage benefits will decrease.
Reporter Park Jin-woo [email protected]
