Air carriers expand mileage services before merger

The Korean Air fleet (Yonhap)

Korea’s two leading carriers, Korean Air and Asiana Airlines, plan to expand mileage services to encourage customers to spend their points that would otherwise be left unused over travel restrictions.

The plan is to cut down liabilities on their balance sheets by incentivizing customers to use up mileage points which is counted as “debt.“ Reducing debts on their balance sheets is a must for the two, as they are awaiting for authorities‘ approval for their merger.

Korean Air will allow mileage points to be converted into rewards such as an E-mart discount voucher, a one-month Naver Plus membership, and forest funds.

Asiana Airlines has its own array of offers, including an accommodation package at a 5-star hotel, price cuts at E-mart, and an extended catalogue on its Mileage Mall.

Both airlines also extended expiration dates by a year for flyer points that were expected to lapse by the end of 2021.

by Ahn Ju-hee (dianahn@heraldcorp.com)