Asiana Airlines Reduces Mileage Accrual Partners Ahead of Integration Plan Announcement

Partnerships with Auction, Aladin, KB Insurance to End in June
"Preemptive Measure to Minimize Confusion Ahead of Mileage Integration Plan"

Asiana Airlines has begun streamlining its mileage accrual partners ahead of the announcement of its mileage integration plan with Korean Air. It appears that the company is reducing the number of partner companies in advance to lessen the financial burden of integrating the two airlines' mileage programs.

Asiana Airlines A321NEO aircraft. Provided by Asiana Airlines

According to Asiana Airlines on April 23, the company will terminate its mileage accrual partnerships with 11st, DB Insurance, KB Insurance, Aladin, Auction, Gmarket, and Goodday Flower effective June 1.

Currently, shopping platforms such as 11st and Auction offer 1 to 5 miles per 1,000 KRW spent. Insurance companies provide benefits such as 1,000 miles for new auto insurance policies. In accordance with this notice, mileage accrual will only be valid for purchases or insurance sign-ups made up to May 31. Previously, Asiana Airlines ended its partnership with KB Kookmin Bank, which allowed customers to earn 1 to 3 miles per transaction when exchanging or remitting foreign currency, as of April 10.

Since December of last year, Asiana Airlines has been operating as a subsidiary of Korean Air following their business combination. Although the full integration is targeted for October next year, the two airlines must submit their mileage integration plan to the government by June. An Asiana Airlines representative explained, "This is a preemptive measure to minimize customer confusion that may arise when the integration plan is announced." Currently, Asiana Airlines has about 60 mileage accrual partners, and this number is expected to continue decreasing.

Korean Air is expected to submit the mileage integration plan to the Korea Fair Trade Commission within the first half of this year. While there is speculation that flight mileage will be converted at a 1:1 ratio, the accrual rates for partner mileage, such as those earned through card usage, differ, raising concerns that a 1:1 conversion could spark backlash from existing Korean Air customers. Korean Air stated, "We are preparing a reasonable plan through external consulting."