South Korea's Watchdog Orders Korean Air to Revise Asiana Mileage Plan, Citing Consumer Concerns

South Korea’s antitrust regulator has ordered Korean Air to overhaul its mileage integration plan for the recently finalized merger with Asiana Airlines, declaring the current proposal fails to meet public expectations. The Fair Trade Commission (FTC) announced on Monday that the flag carrier has one month to submit a revised plan that offers customers more practical ways to use their miles.

According to the FTC, the order requires Korean Air to present a more detailed strategy, specifically including measures for the use of bonus seats and seat upgrade services. This move complicates a key aspect of the post-merger integration between the nation's two largest carriers, which was formally completed in December 2024.

The commission stressed the need for a plan that actively helps customers spend their accumulated miles, a critical step to protect consumer assets in the transition to a single dominant airline.

Korean Air now faces the challenge of crafting a new proposal that satisfies the regulator while managing the financial implications of integrating two massive loyalty programs. The outcome will be closely watched as a test case for consumer protection in a major airline consolidation.

PRISM Insight

The FTC's move is a clear signal that post-merger regulatory scrutiny isn't limited to routes and market share. As industries consolidate, loyalty programs—often seen as a soft benefit—are increasingly viewed by regulators as a tangible consumer asset that requires protection. This intervention in South Korea reflects a global trend where watchdogs are digging into the fine print of M&A deals to prevent a subtle erosion of consumer value. For companies undergoing mergers, it's a reminder that a smooth integration of customer-facing systems and benefits is as critical as the backend corporate fusion.