The Truthful Commerce Fee has instructed Korean Air to enhance its mileage integration plan with Asiana Airways, one of many largest issues forward of the company mixture between the 2 airways. Given vital issues concerning the depreciation of airline customers’ mileage worth, the fee is demanding extra particular and sturdy client safety measures that meet public expectations.
The FTC introduced on Dec. 22 that following its assessment on Dec. 10 of Korean Air and Asiana Airways’ mileage integration plan approval, it has required Korean Air to complement the content material and resubmit inside one month.
The important thing concern the FTC identified on this assessment was the availability administration plan for bonus seats and seat improve providers utilizing mileage. The fee decided that sensible measures to make sure customers can easily use their mileage at desired occasions even after integration stay inadequate.
The FTC made clear that the mileage integration plan is a matter of nationwide curiosity, straight linked to the day by day lives of airline customers. The fee’s place is {that a} plan should be ready that meets public expectations and requirements, going past easy company integration.
An FTC official emphasised, “We are going to assessment the mixing plan extra rigorously and completely to finally guarantee approval of a plan that may fulfill all airline customers.” That is interpreted because the FTC’s dedication to not loosen its grip in future assessment processes to dispel market issues about mileage worth deterioration.
Korean Air should resubmit an improved mileage integration plan inside one month based on the FTC’s necessities. The FTC plans to start re-review following examiner assessment as soon as the resubmission is made.
Trade observers view the FTC’s motion as sending a robust message prioritizing client rights amid rising issues about monopolistic practices by main airways. On condition that the FTC has raised sturdy client safety as its rationale, consideration focuses on whether or not Korean Air’s supplementary measures will embody dramatic content material reminiscent of increasing the proportion of bonus seats or adjusting mileage conversion charges.
