What happens to mileage when Korean Air integrates with Asiana? Hankyung.com



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Korean Air decides to take over Asiana Airlines
Government “No rate increase” [이슈+]

Photo = Getty Image Bank

Photo = Getty Image Bank

Korean Air, the number one national airline in Korea, has officially announced the acquisition of Asiana Airlines, the number two airline. When the ‘big business of aviation’ in which Korean Air absorbs and integrates Asiana Airlines concludes, the world’s seventh largest domestic airline with an asset size of 40 trillion won will be launched. However, from the consumer point of view, there is concern about the price increase due to the monopoly structure after the integration and the integration of miles of both companies.

On the 16th, the government announced a policy to take advantage of the synergy effect of integration so that the damage of the monopoly is not reflected in an increase in airfare prices even after the launch of the integrated corporation in the future.

Kim Sang-do, head of the aviation policy department at the Ministry of Land, Infrastructure and Transport, predicted that there will be no rapid increase in fares given the competition between foreign airlines and low-cost airlines (LCC) in the subsequent briefing. .

Kim said: “International airfares are not set arbitrarily, but the upper limit is set in accordance with the aviation agreement, and the fares are determined in various ways within it.” The rate) cannot be increased. ”

Photo = Yonhap News

Photo = Yonhap News

It is also explained that the rapid abolition of routes to improve profitability will not be great. Mr. Kim said: “Instead of the abrupt abolition of routes, we will develop new routes or place organizations or surplus labor on routes that require additional operations to avoid harm to consumers.”

The case of the Americas was cited as a case in which consumer benefits could occur after the inauguration of an integrated corporation. “Until now, Korean Air and Asiana Airlines operate planes at the same time on the same day three times a week, limiting consumer choices,” Kim said. “If you trade on different days (after adjustment), the benefits to the consumer will increase.”

Photo = Korean Air

Photo = Korean Air

In the case of the mileage system operated independently by both companies, it is operated in a unified manner. However, detailed operational plans have not been developed.

“When integrated, the mileage is used together,” Kim said, saying, “Asiana’s mileage was a major inconvenience to consumers due to lack of use. Now, Korean Air and related affiliate services can be used, which will increase consumer comfort. “

However, within and outside the aviation industry, it is anticipated that it will be difficult for the mileage of both companies to be recognized as the same value after integration. This is because Korean Air’s mileage is currently recognized at a relatively higher value than Asiana’s mileage.

Consumers also regret that the global aviation alliances that each company has joined are different. Korean Air is a member of SkyTeam, an alliance of Air France and Delta Air Lines. Asiana Airlines is a member of the Star Alliance along with Lufthansa and United Airlines, but industry officials predict that it is highly likely to withdraw after integration.

One consumer said: “I have constantly accumulated the Asiana Airlines mileage with a specialized mileage credit card, but the travel route is blocked by the new coronavirus infection (Corona 19).

Meanwhile, Cho Won-tae, Chairman of Hanjin Group, responded to customers’ concerns by saying, “We will expand the range of customer options through rational operation and improve the convenience of consumers,” in the position of the decision to acquire Asiana Airlines.

Reporter Oh Jung-min Hankyung.com [email protected]
Article Reports and Press Releases [email protected]

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