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-   -   Skypass Program Changes (https://www.flyertalk.com/forum/korean-air-skypass/1999621-skypass-program-changes.html)

Jimgotkp Jan 6, 2021 4:50 pm

Looks like they changed their site too

Digicola Jan 7, 2021 12:21 am


Originally Posted by Jimgotkp (Post 32945312)
Looks like they changed their site too

So did their app. It actually looks functional now.

fly747first Jan 11, 2021 2:26 pm


Originally Posted by Digicola (Post 32946499)
So did their app. It actually looks functional now.

About time! KE needed serious updates

EPR-QG Feb 4, 2021 3:29 pm

Korean FTC orders KE to correct unfair practices in Skypass devaluation
 
As reported before, in early 2020 the Korean Fair Trade Commission expressed concern that the Skypass devaluation was an unfair practice and recommended that Korean Air address the matter (this has no legal power, but it is very unusual for companies to ignore such recommendations). Unlike courts in the U.S., the KFTC has an established precedent that miles constitute monetary rights -- a form of currency owned by the customers who hold them (and not by the airlines or the issuers of the miles). In May 2020, KE re-submitted an unrevised plan to the KFTC, ignoring all recommendations, and bulldozed ahead with their devaluation plan. This triggered an escalation where the KFTC launched a proper full-fledged investigation of the new terms and conditions.

Now the situation has changed. KE needs to be in the good graces of the KFTC because KE needs the KFTC to approve its merger with Asiana. KE attempted to circumvent this problem by delaying the devaluation by 2 years (so that the KE-OZ merger would be safely settled by the time KE goes to war with the KFTC over Skypass devaluations), but the KFTC said no dice. The KE-OZ merger and the Skypass devaluation are separate independent matters, but the KFTC has stated that guaranteeing fair financial value for customers in the mileage program(s) is part of their antitrust considerations in the KE-OZ merger, and that they want changes in the Skypass program to be settled with terms that are fair to consumers prior to any conclusive evaluation of the effects of the KE-OZ merger on consumer rights.

As such, after a year of investigation, the KFTC is now ordering KE to correct what the KFTC deems unfair practices in the Skypass devaluation. Again, this is not legally binding, and KE can refuse, but then the KFTC can take KE to the courts. KE likely wants to avoid such confrontations at all costs. KE is continuing to plead their case that they have not in fact devaluated customers' financial rights, but has pledged to work with the KFTC's process. The necessary adjustments to the new Skypass terms and conditions are to be finalized by March.

News report in Korean: https://news.mt.co.kr/mtview.php?no=2021012918303626553

Finance_underling Jun 3, 2021 11:24 pm

https://www.koreanair.com/us/en/foot...5-mcextension#

Can someone clarify this 1yr "extension"? Didn't they already extend qualification for another 6mo?

Finance_underling Jun 8, 2021 10:08 pm


Originally Posted by Finance_underling (Post 33302129)
https://www.koreanair.com/us/en/foot...5-mcextension#

Can someone clarify this 1yr "extension"? Didn't they already extend qualification for another 6mo?

I can confirm that morning calm qualification period has been extended another year.

mikesaidyes Jun 9, 2021 12:37 am


Originally Posted by Finance_underling (Post 33314153)
I can confirm that morning calm qualification period has been extended another year.

Yes and you get it only on your expiration of your current morning calm period

like mine just expired end of April

And I got TWO YEARS for actually hitting morning calm (before Rona before my period was up)

And then the extra year

So I'm good until April 2024

EPR-QG Feb 22, 2022 12:38 am

Korean Fair Trade Commission bans unfavorable changes in SkyPass for 10 years
 
https://www-yna-co-kr.translate.goog...ko&_x_tr_tl=en (This is Korea's equivalent of Associated Press)

As a precondition for approving the KE-OZ merger, the KFTC has banned changes in the SkyPass program that is deemed unfavorable to customers relative to the policy in effect at the end of 2019 at the two airlines. This restriction is valid for 10 years starting from the date of completion of the KE-OZ merger (the date on which KE completes the acquisition of OZ stock). Furthermore, any scheme for converting OZ miles to KE miles during the merger is subject to KFTC approval. The quality of service may also not be reduced, including seat pitch, free in-flight meals, free checked luggage, and lounge access.

It's not evident from this article, but KE's stance (according to statements issued to other outlets) is basically that they are complaining about the 10-year restriction on SkyPass changes on the basis of customer benefits (yeah, sure) and global competitiveness (obviously), but they are overall accepting the KFTC's ruling (and planning to negotiate the implementation details with KFTC behind the scenes) because it's the only way the KE-OZ will be allowed to move forward. They probably want this to be a done deal before the next administration (Korea is just a couple weeks away from the next presidential election).

EPR-QG May 19, 2022 4:04 am

Korean Air plans to ignore the KFTC's order
 
According to a source, Korean Air is planning to force its way through the Skypass devaluation, ignoring the KFTC's conditional approval of the KE-OZ merger that bans unfavorable changes for 10 years. The hope is that the KFTC will not do anything to enforce their decision, especially under the new conservative government that does not care about consumer protections. Everyone should burn their miles ASAP before the devaluation.

JapanFlyerT Aug 4, 2022 5:37 am


Originally Posted by Holometer3D (Post 34262741)
According to a source, Korean Air is planning to force its way through the Skypass devaluation, ignoring the KFTC's conditional approval of the KE-OZ merger that bans unfavorable changes for 10 years. The hope is that the KFTC will not do anything to enforce their decision, especially under the new conservative government that does not care about consumer protections. Everyone should burn their miles ASAP before the devaluation.

I just logged in and see they have new "zone" charts from April 2023. That sucks.

EPR-QG Feb 20, 2023 10:16 pm

Korean Air folds under pressure from government
 
Facing harsh criticism from two ministers, KE has indefinitely delayed the impending devaluation and will spend the next few months coming up with an "improved" new Skypass plan. According to industry insiders, it will likely keep the distance-based redemption structure but will tone down the devaluation of existing miles. Since they were claiming to offset the devaluation by awarding bonus miles to elites and high revenue passengers in the previously announced "New Skypass" plan, my personal guess is that they will have to reduce the mileage accrual rate across the board in order to match a lower redemption rate, but existing miles will not be devalued as badly.

Article in Korean: https://www.chosun.com/economy/indus...FGLPMJQQHKMPE/

CX HK Jun 18, 2023 12:57 am


Originally Posted by Holometer3D (Post 35027994)
Facing harsh criticism from two ministers, KE has indefinitely delayed the impending devaluation and will spend the next few months coming up with an "improved" new Skypass plan. According to industry insiders, it will likely keep the distance-based redemption structure but will tone down the devaluation of existing miles. Since they were claiming to offset the devaluation by awarding bonus miles to elites and high revenue passengers in the previously announced "New Skypass" plan, my personal guess is that they will have to reduce the mileage accrual rate across the board in order to match a lower redemption rate, but existing miles will not be devalued as badly.

Article in Korean: https://www.chosun.com/economy/indus...FGLPMJQQHKMPE/

But no word on Korean bringing back million miler program right?

EPR-QG Jun 18, 2023 1:23 am


Originally Posted by CX HK (Post 35341292)
But no word on Korean bringing back million miler program right?

Well, the entire "New Skypass" program has been scrapped, so until they announce what new reforms will replace it (my understanding is that they are trying hard to find some careful balance that can pass muster with the populist politicians and regulatory officials pressuring them), the million miler system remains exactly as it was under the legacy Skypass program. For what it's worth, even if the "New Skypass" program had gone into effect as planned, all existing Morning Calm Premium and Million Miler statuses (achieved by the end of 2024) were going to be grandfathered as lifetime Gold and Platinum respectively under the new program, and whatever replaces this now-scrapped reform cannot be worse, so I presume we can safely assume a similar level of grandfathering as long as the statuses are reached within the next couple of years.

HawaiiO Dec 19, 2023 8:47 am

KE Skypass program future
 
KE Skypass program , whats the future of it ?

A few years ago, KE was going to revamp it and do away with lifetime qualifications.
But the old/current program is still going on...

KE still going to kill off the old/current program?

IMH Dec 20, 2023 7:56 am

There haven't been any new posts in the past six months, but this is the thread you need:

https://www.flyertalk.com/forum/kore...m-changes.html


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