Won Hee-ryong criticizes Korean Air mileage again… “Wrong attitude”

Korean Air reorganizes flight distance standard system
The government cannot intervene, but points out the need for improvement
Won Hee-ryong “It’s a shame that we can’t promote thanks”

Minister of Land, Infrastructure and Transport Won Hee-ryong pressed again on the Korean Air mileage reorganization plan, saying, “We came up with a plan to buy complaints even though we couldn’t hold a thank-you promotion with tears saying thank you for helping us survive during the COVID-19 period.”

Minister Won met with reporters at an apartment building construction site in Seoul on the 19th and said, “I hope that by making the structure difficult for consumers to use, they will eventually resolve the distrust and dissatisfaction of customers who say that only their profits are sincere and customer appreciation is only words.”

Previously, Korean Air decided to implement a new mileage system in April. Korean Air currently divided into one domestic and four international routes and deducted mileage, but in the future, it will be subdivided into one domestic and 10 international routes in proportion to the distance traveled.

As the mileage deduction standard changes from ‘region’ to ‘distance traveled’, long-distance travelers have to spend more mileage than before to purchase the same ticket. The Incheon-New York one-way route currently requires 35,000 miles for economy class, 62,500 miles for prestige class, and 80,000 miles for first class, but when the mileage system is reformed, it will increase to 45,000 miles, 90,000 miles, and 135,000 miles, respectively.

Consumers are outraged that Korean Air unilaterally reduced mileage benefits for long-distance routes when there is a shortage of bonus seats that can be purchased with mileage. On the other hand, Korean Air is in the position that when the new mileage system is introduced, the deduction rate for short and medium distance routes will decrease, and many short and medium distance passengers who are currently ignored will benefit.

The government and the ruling party are increasing the intensity of pressure, citing the harmful effects of monopoly. Jeong Jin-seok, chairman of the People’s Power Emergency Response Committee, raised the eyebrows, saying, “Korean Air’s greed, which virtually monopolized long-distance air routes, not to mention the monopoly and oligopoly of banks and telecommunications companies, exploded public anger.”

The Ministry of Land, Transport and Maritime Affairs, the ministry responsible for the aviation industry, cannot directly intervene in Korean Air’s mileage system, so it will not review it, but it believes that a review is necessary. In particular, as Korean Air has received financial benefits such as financial support from the government amid the corona situation, it is the position that it should rather focus on consumer compensation.

Minister Won said on the same day, “I am concerned about the damage to customers caused by the monopoly in the European Union (EU) competition authorities, disruption of order in the aviation market, and the harmful effects of monopoly.”

At the same time, he criticized, “The appreciation promotion of tears saying thank you for helping me survive the corona period came up with a way to buy complaints,” and “the attitude of teaching that this is advantageous to the people is fundamentally wrong.”

As criticism from the government and the ruling party focuses on consumer complaints, there is a prospect that Korean Air will come up with additional consumer benefits or delay the implementation of a new mileage system.

Reporter Ok Seong-gu, Sejong