Planes of Korean Air Co. and Asiana Airlines Inc. are seen on the tarmac at Incheon International Airport, west of Seoul, in this Nov. 2, 2023, file photo. (Image courtesy of Yonhap)
SEOUL, June 12 (Korea Bizwire) — South Korea’s antitrust regulator said Thursday that it has rejected a proposed mileage integration plan submitted by Korean Air Lines Co. and Asiana Airlines Inc., citing insufficient details and consumer benefit concerns.
The Fair Trade Commission (FTC) said the plan, submitted earlier in the day as part of the carriers’ broader merger plan, failed to meet the standards necessary to proceed with a formal review.
“There were shortcomings in the proposed mileage redemption plan compared to what Asiana Airlines previously offered,” the FTC said. “In terms of the proposed mileage integration ratio and other explanations, we found the submission insufficient to initiate a full assessment.”
The FTC requested Korean Air to immediately revise and supplement the proposal before resubmitting.
In November 2020, Korean Air signed a deal to acquire a controlling stake in Asiana Airlines, aiming to form the world’s 10th-largest airline by fleet size.
The nation’s two full-service carriers account for a combined 40 percent of passenger and cargo slots at Incheon International Airport, South Korea’s main gateway.
(Yonahap)
