Why Korean Air, Asiana Airlines in rush to shed unused mileage points

South Korea's top two airlines, Korean Air and Asiana Airlines, are recently ramping up efforts to encourage their passengers to use up their mileage in an apparent move to ease financial burdens ahead of their planned merger later this year. Korean Air recently announced a strategic partnership with GS Retail, a local retailer operating GS25 convenience stores, to allow customers to use their Korean Air points at GS25 outlets. Asiana Airlines also plans to launch an online shopping site exclusively for mileage points use next month. During the COVID-19 disruptions, many travelers were unable to redeem their mileage points, leading to an increase in the total amount of unused miles. Both airlines were also forced to extend the mileage expiration dates due to the global pandemic. As a result, their unused mileage points have surged to a combined 3.5t won ($2.6b) in recent years. According to the latest data released by the Financial Supervisory Service on Monday, Korean Air's deferred income, which reflects the accumulated points, stood at 2.52t won as of June, up 15.2% from 2019 before the pandemic. During the same period, Asiana Airlines saw an almost 40% jump to 975.8b won. With their unused mileage points piling up, their passengers are wary of any change in the value after the merger of the two airlines that is still waiting for approval from the US aviation authorities. Both airlines denied immediate changes in their mileage management systems even after the merger, at least for another two years. "Even after the merger gets the final nod by the US, the airlines will continue to operate as two separate brands for two years,” a Korean Air official said. “After that, we plan to combine the two brands into Korean Air and discussions will be made on details, including mileage transfer.”<br/>