Korean Air and Asiana Airlines may continue to operate separate mileage programs as they approach their merger at the end of the year.
According to industry sources on July 15, Korean Air recently indicated in a revised securities filing that there could be delays in integrating mileage programs with Asiana Airlines.
The filing stated, "If we do not receive approval from the Fair Trade Commission for the mileage integration plan before the merger date, we may need to maintain and operate the existing mileage programs of Korean Air and Asiana Airlines separately until that approval is granted, in order to avoid unfavorable changes compared to the end of 2019."
Last December, the Fair Trade Commission issued a corrective order regarding Korean Air's mileage integration plan, aimed at minimizing the loss of expiring miles.
Korean Air submitted a revised plan in January, but has yet to receive final approval after six months. If separate operations become a reality, the burden on Korean Air could be significant.
The airline explained, "If we determine that unfavorable changes have occurred compared to 2019 while maintaining the mileage programs separately, we could face a daily penalty of approximately 925 million won under the Fair Trade Act."
Additionally, Korean Air expressed concerns that the dual operation of the mileage programs would lead to increased costs due to the need for separate IT systems, staffing, and services, as well as delays in realizing synergies from member integration.
* This article has been translated by AI.
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