The outline of the mileage conversion ratio between Korean Air and Asiana Airlines is expected to be revealed as early as next month. While there may be differences in mileage accrued through credit card usage and other means, the plan to convert boarding miles at a 1:1 ratio is seen as likely.
According to the airline industry on the 17th, Korean Air is currently conducting a value analysis for the integration of mileage with Asiana Airlines through a consulting firm. The results are expected to be received by the first half of this year and a final proposal will be submitted to the Fair Trade Commission by June. The Fair Trade Commission will announce its approval status by October 2026, when the merger of Korean Air and Asiana Airlines is finalized.
The integration ratio for boarding miles earned through ticket purchases is likely to be converted at a 1:1 ratio. Boarding miles are accumulated in proportion to the distance traveled, and since the distance to the destination is similar even with other airlines, the accumulated miles tend to be similar. In the past, when Delta Air Lines and Northwest Airlines merged in 2008, the boarding miles of both companies were recognized at a 1:1 ratio.
The conversion of partnership miles to a 1:1 ratio is expected to be challenging. Partnership miles refer to airline miles accrued through the use of credit cards, hotels, and rental cars. For partnership cards that earn airline miles according to credit card expenditures, Korean Air typically earns 1 mile for every 1,500 won spent, while Asiana Airlines earns 1 mile for every 1,000 won spent.
If partnership miles are converted at a 1:1 ratio, the financial burden on Korean Air will increase. As of the third quarter of last year, the deferred revenue representing the remaining miles for Korean Air and Asiana Airlines was estimated at 2.5542 trillion won and 981.9 billion won, respectively. The exact proportion of partnership miles is not known. The National Assembly's Legislative Research Service proposed a conversion ratio of 1:0.9 in a report published on December 9 last year.
Korean Air is set to host the 'KE Rising Night' event on the 11th of next month to unveil its new corporate identity (CI). Following the new CI announcement, it plans to gradually implement changes to aircraft paint schemes, redesign the uniforms for flight and cabin crew, and rebrand the appearance of airport lounges and its office building.