regulator-air carriers

regulator-air carriers

Regulator orders air carriers to correct unfair mileage policy

By Kang Yoon-seung

SEOUL, April 26 (Yonhap) -- South Korea's antitrust regulator said Wednesday it has ordered the country's two leading air carriers to correct their unfair policy on the expiration of mileage points.

Korean Air Co. and Asiana Airlines Inc. were ordered to revise their expiration policy on mileage points, amid the growing criticisms that they did not take special circumstances into account, including the pandemic, the Fair Trade Commission (FTC) said.

During the COVID-19 pandemic, the government reached an agreement with air carriers to extend the expiration by three rounds up to 30 months.

Local air carriers have operated an expiration policy on mileage points since 2008, and starting 2019, these points have started to expire. Consumers have expressed complaints about this policy, particularly as the COVID-19 pandemic has made it challenging to use such points.

"Under special circumstances in which customers cannot redeem their points, it is reasonable to extend the expiration under the principle of good faith and fairness," the FTC said.

"We have ordered (air carriers) to extend expiration when the use of points of all members becomes impossible or substantially restricted."

The regulator also imposed limitations on the airlines' policy of implementing a new miles deduction policy with a 12-month grace period without considering any exceptional circumstances. Under the revised guidelines, the FTC has instructed air carriers to extend these grace periods when there are disruptions to regular air travel.

The FTC has also directed Korean Air to include a provision in its terms and conditions that holds the company accountable for any issues that may arise when customers use their mileage points with partner firms, for which the carrier is responsible.

The regulator said it plans to continue its efforts to bolster customers' rights and set up fair trade rules in areas that closely affect the everyday lives of the people.


(END)

[Copyright ⓒ K-VIBE. All rights reserved. Unauthorized reproduction and redistribution are prohibited.]