South Korea’s Fair Trade Commission (KFTC) has rejected a proposed mileage integration plan submitted by Korean Air Lines and Asiana Airlines, citing a lack of clear information and concerns over consumer benefits.
The regulator announced that the plan, submitted by the airlines on June 12, 2025, did not meet the requirements needed for a formal review, according to Yonhap News Agency.
“There were shortcomings in the proposed mileage redemption plan compared to what Asiana Airlines previously offered,” KFTC said in a statement seen by Yonhap News Agency. “In terms of the proposed mileage integration ratio and other explanations, we found the submission insufficient to initiate a full assessment.”
The Korean regulator chose not to reveal the specifics of the proposal, mentioning that it plans to hold discussions with stakeholders and experts at a suitable time after changes are implemented.
According to Yonhap News, the main issue in the plan is the conversion of Asiana Airlines miles into Korean Air miles post-merger, which could impact how travelers can use their current rewards. Although flight miles are anticipated to be exchanged at a 1:1 rate, miles gained through credit cards and partner programs could be valued lower because of different calculations.
The KFTC asked Korean Air to quickly update the proposed plan before sending it again, Yonhap News Agency’s report concluded. The mileage program is one of the KFTC’s mandatory conditions. The rejection will stall the review, likely delaying the full corporate integration beyond the planned October 2026 timeframe.
In November 2020, Korean Air signed a deal to acquire a controlling stake in Asiana Airlines, with the goal of forming the 10th largest airline in the world by fleet size.
In February 2022, the KFTC approved Korean Air’s purchase of a 63.88% stake in Asiana Airlines. The acquisition was completed in December 2024, and Asiana Airlines is now functioning as a subsidiary of Korean Air.
This is not the first time airline mergers have raised concerns over loyalty program integration. A notable example is the 2010 merger between United Airlines and Continental Airlines. The two carriers integrated their loyalty programs – United Mileage Plus and Continental OnePass – into a single MileagePlus program.
In that case, miles were also converted on a 1:1 basis. However, some loyal Continental flyers criticized the new program for reduced upgrade opportunities and less favorable elite status benefits.
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