Dhaka: Korean Air unveiled a revised mileage integration plan as part of its merger with Asiana Airlines, setting out conversion rates and a 10-year grace period that it said underline its commitment to consumer fairness and regulatory compliance.

After months of consultation, the flag carrier said Asiana members’ flight-accrued miles would convert to Korean Air’s Skypass program at a 1-to-1 rate, while miles earned through credit card partnerships would convert at 1-to-0.82.

Korean Air said the parity rate for flight-based miles reflects similar accrual structures at both airlines, while the lower rate for partner miles accounts for differences in underlying acquisition costs.

Under the proposal, Asiana members can transfer their entire mileage balance to Skypass at any time during the 10 years following integration.

During that period, miles can still be redeemed under Asiana’s current chart for Korean Air economy and prestige class award tickets, though first class awards — not offered under Asiana’s program — will remain excluded.

In addition to Asiana’s existing routes, members will gain access to 59 Korean Air destinations, including Lisbon, Amsterdam, Auckland and Washington. Miles can also be used to cover up to 30% of airfare or exchanged for duty-free vouchers and merchandise.

“Korean Air will make mileage use more convenient and provide greater choice for consumers under the integration plan submitted to the Fair Trade Commission,” a company official said.

The revised proposal, viewed as the final step before full merger approval, was filed on Thursday after the FTC rejected an earlier version in June, citing insufficient detail and fairness in conversion ratios and redemption options. The regulator has opened a two-week public consultation before issuing its decision.

An FTC official said the proposal could affect the merger timeline, currently targeted for January 2027.

The financial impact of the integration remains unclear, as mileage liabilities are recorded on Korean Air’s balance sheet. As of midyear, Korean Air reported 2.7 trillion won ($1.9 billion) in deferred revenue, while Asiana reported 929.3 billion won.

“The effects of the mileage integration will be reviewed in accordance with accounting standards and reflected in the company’s financial statements following an external audit,” the company official said.

The integration plan will also align Asiana’s four membership tiers — Platinum, Diamond Plus, Diamond and Gold — with equivalent Skypass tiers, with validity maintained. Korean Air will introduce a new tier, Morning Calm Select, to accommodate the changes.

Once the mileage transfer or the 10-year grace period ends, member status will be recalculated based on combined flight miles flown with both airlines, the carrier said.

-B