Although mileage seats are increased… Criticize the Ministry of Land, Infrastructure and Transport and even the ruling party
Korean Air claims “short-haul route benefits will increase when the system is reformed”
(Seoul = Yonhap News) Correspondent Park Cho-rong and Choi Pyeong-cheon = As the public anger over the Korean Air mileage reorganization plan intensified, the government began putting pressure on Korean Air, saying that it should come up with a reasonable mileage consumption plan.
In the airline industry, there are also observations that Korean Air may delay the implementation of the mileage reform plan or review it from scratch as the government’s pressure increases.
According to the airline industry and the Ministry of Land, Infrastructure and Transport on the 19th, Korean Air reported to the Ministry of Land, Infrastructure and Transport on plans to expand bonus seats and operate special planes with a high proportion of bonus seats.
Along with the mileage reform, Korean Air is said to have doubled the proportion of bonus seats, which account for more than 5% of the existing total seats, and to operate about 100 special flights on New York, Los Angeles, and Paris routes for a limited time this year’s peak season.
The Ministry of Land, Infrastructure and Transport said, “We have to meet the public’s eye level,” and evaluated that Korean Air’s plan to expand mileage seats was insufficient.
[연합뉴스TV 제공]
◇ The ruling party demands a review of the reorganization plan… “Consumer Oolong”
Korean Air will reorganize the SKYPASS system that adjusts the mileage deduction rate in April.
Currently, mileage is deducted for one domestic flight and four international flight regions: Northeast Asia, Southeast Asia, Southeast Asia, Americas, Europe, and Oceania.
As the mileage deduction rate for long-distance routes increased, consumers complained that Korean Air unilaterally reduced mileage benefits.
In addition, there is even a voice saying that the mileage system should be fundamentally reformed, saying that there is a huge shortage of bonus seats that can be purchased with mileage.
Minister of Land, Infrastructure and Transport Won Hee-ryong said on Facebook on the 15th, “Airline mileage is a so-called ‘light apricot’ where it is difficult to accumulate and there is no place to use it.” The routes and seats must also be supplemented,” he criticized.
On the 17th, the power of the people criticized the Korean Air mileage reorganization plan as “ridiculing consumers” and urged a review.
Seong Il-jong, chairman of the policy committee, said at an in-hospital countermeasures meeting, “Korean Air should forget that it received employment maintenance subsidies with taxpayers’ money and received emergency funds through a national bank in the situation of Corona 19, and mocked consumers.” We ask for a review of the plan,” he said.
Although the Ministry of Land, Transport and Maritime Affairs cannot officially intervene in Korean Air’s mileage policy, which is a private company, it is in the position that it can represent the voices of the people as the ministry in charge of the aviation industry.
An official from the Ministry of Land, Infrastructure and Transport said, “Airline mileage is not a legally restricted issue.”
The Fair Trade Commission is also reviewing whether Korean Air’s mileage reform plan is fair. There is a possibility that the Fair Trade Commission will demand correction after determining that Korean Air’s mileage terms and conditions are unfair before the implementation of the reform plan.
It is interpreted that the government and the ruling party’s criticism of Korean Air’s mileage policy is part of stabilizing the livelihood of the people. The reorganization of mileage is seen as the same as ‘the evils of the oligopoly system’ in the financial and telecommunications industries.
At the 13th Emergency Economic Livelihood Meeting on the 15th, President Yoon Seok-yeol ordered the financial sector to reduce the ‘deposit margin’ (the gap between loan interest rates and deposit rates) and the telecommunications industry to expand rate options.
Korean Air and Asiana Airlines[020560]It seems that the government has expressed its will to prevent monopoly harm in advance, as it will become the only large domestic airline (FSC) if it acquires.
Some are concerned that the government is excessively intervening in the management of private companies.
[연합뉴스TV 제공]
◇ Korean Air “Benefits on short-distance routes increase… Lower deduction rate than foreign airlines”
Korean Air is in a position that the mileage reorganization is focused only on increasing the deduction rate for long-distance routes, and the benefits received by the majority of short-haul passengers are neglected.
Korean Air explained that among customers who purchase award tickets, the proportion of customers using domestic flights is close to 50%, and when including customers on short and medium-haul international flights such as Japan, China, and Southeast Asia, the figure reaches 76%.
Currently, customers with 70,000 miles who can purchase economy class long-distance tickets account for only 4% of all members, so if the deduction rate for long-distance routes increases and the deduction rate for short-distance routes decreases, the majority of members will benefit.
Korean Air also claimed that the mileage deduction rate after the reorganization was lower than that of foreign airlines.
In the case of the Incheon-LA route, which corresponds to the 8th section of the mileage deduction standard, 80,000 miles are required to purchase a round-trip ticket after the reorganization. For the same 8 sectors, Delta Air Lines Incheon-Seattle requires 130,000-150,000 miles, United Airlines Incheon-San Francisco requires 137,000-160,000 miles, and Air France’s Incheon-Paris requires 140,000-300,000 miles.
In addition, Korean Air announced that it would maintain or increase the mileage accrual rate for first class and prestige class.
In the case of economy class, the mileage accumulation rate was lowered for 7 out of 13 reservation classes, but compared to major overseas airlines maintaining 1 to 4 reservation classes with a 100% accumulation rate, the mileage accumulation rate is high.
Korean Air emphasized that it was a reorganization in line with global standards, saying that the partial downward adjustment of the accumulation rate was made in 22 years and the partial increase in economy class mileage was made in 20 years.
Despite Korean Air’s clarification, consumers’ anger has not subsided.
Currently, the high proportion of short-distance route mileage use is due to the lack of mileage seats on long-distance routes.
In particular, many consumers believe that mileage benefits on long-distance routes with fewer options are more important than on short-haul routes with alternative low-cost carriers (LCC).
Report via KakaoTalk okjebo
<저작권자(c) 연합뉴스,
Unauthorized reproduction – redistribution prohibited>
2023/02/19 06:31 Send