• The Korean Journal of Air & Space Law and Policy
• /
• v.30 no.1
• /
• pp.65-94
• /
• 2015

Since American Airlines launched AAdvantage which was the first Frequent Flyer Program in 1981, many people has accumulated mileage credits, and now, frequent flyer program(FFP) is the universal marketing tool to the airlines. These days, airlines establish a strategic alliance with domestic and foreign companies of various fields ; other airlines, travel agencies, car hire firms, hotels, department stores, even credit card companies. However, more people want to use their mileage credits, more airlines reject to approve that or change frequent flyer program against their customers. Last year, Northwest, Inc. v. Ginsberg, the United State Supreme Court made a decision that the preemption provision of Airlines Deregulation Act(ADA) preempts state laws related to rates, routes and services for air carriers including implied covenant of good faith and fare dealing. Thus, the claim of Ginsberg was canceled, it means that Northwest Inc. could terminated one-sidedly his membership in the frequent flyer program. In the contrast, Korea does not have the statute like ADA. If customers file a claim on FFP like Ginsberg, the courts of Korea judge whether the clauses of standard form contract are unfair or not. Therefore, in this article, Ginsberg would be checked on legal issues and be compared briefly with the courts' ruling in Korea.

• The Journal of the Korea Contents Association
• /
• v.14 no.6
• /
• pp.397-406
• /
• 2014

Recently, China has expanded enormously its economic trade exchange bilaterally with other nations and developed as the second largest aviation market in the world. While open skies bilateral agreements were signed between China and other countries, the agreement processes influenced the aviation market structure and market sharing heavily. This paper analyzed the Chinese aviation market by such three angles as market scale, competitive situation, and market concentration. It is concluded that the Chinese aviation market is the oligopolistic market structure tested by the Herfindahl-Hirschman Index. Finally, suggestions are given to the airlines operating in China such as joining the air alliance, paying attention to a different frequent flyer program (FFP) etc.

• Journal of the Korean Society for Aviation and Aeronautics
• /
• v.22 no.1
• /
• pp.95-107
• /
• 2014

A customer loyalty program (i.e., FFP) has become more important to keep loyal customers especially for legacy airlines. Therefore, the researchers intended to examine the elements of an airline loyalty program and how these elements influenced the effects of the loyalty program. To set up the research framework, the commitment-trust model (i.e., KMV model) in the loyalty program was used in this study. Shared values, benefits, serviceabilities, and affiliated companies were considered as independent variables (i.e., elements of FFP). Trust and commitment added as mediating variables and customers' loyalty were examined as a dependent variable. A survey has been conducted. All independent variables had positive relationships with trust and commitment and trust influenced commitment. Lastly, the mediating variables had positive effects on customers' loyalty.

• Korean Business Review
• /
• v.12
• /
• pp.239-254
• /
• 1999

There has been a lot of researches on the major motivation of consumer's choice for airlines. Due to the competition in airline industries, most of airlines offer a various level of benefits to customers such as a frequent traveller bonus, a schedule, services in flight including a meal and an entertainment program, a discounted fare and an intangible part of personal service. However, it is very difficult to measure the performance of the customers' benefit and to identify the weight of each factor being considered on the airline choice. In this paper, we focus on the airline choice process for the business travellers. The AHP is applied to evaluate the factors reflecting the business travellers' choice for airlines. This study will be useful to build a marketing plan for the business traveller's market.

• The Korean Journal of Air & Space Law and Policy
• /
• v.25 no.2
• /
• pp.163-199
• /
• 2010

A frequent flyer program is a loyalty program offered by many airlines. Typically, airline customers enrolled in the program accumulate frequent flyer miles corresponding to the distance flown on that airline or its partners. There are other ways to accumulate miles. In recent years, more miles were awarded for using co-branded credit and debit cards than for air travel. Acquired miles can be redeemed for free air travel; for other goods or services, such as travel class upgrades, airport lounge access or priority bookings. The first modern frequent flyer program was created Texas International Airlines in 1979. This program was also adopted in Korean Air in 1984. Since then, the mileage programs have grown enormously. As of June 2009, the total member of two national airlines in Korea had been over thirty million. However, accumulated miles could be burden of airlines, because the korean corporations should record the annual financial report the accumulate mileage on a liability account by 'the international financial report standards(IFRS)' next year. The korean airlines need to minimize the accumulated miles, so that for instance Korean Airlines SKYPASS-miles expire 5 years after being earned. It means that miles earned on or after July 2008 will expire after five years if unredeemed. Thus, this paper attempt to analyze the unfairness of the mileage rules of korean airlines by examining a specific portion of the conditions relating to consumer protection, because many mileage users has difficulties using mileage programs and complained the amendment of the mileage rules. In conclusion, the contemporary mileage rules in Korea are rather unsatisfactory, because airlines is not only recognizing a mileage into a kind of benefit but also denying inheritance of mileage and the legal nature of mileage as a property right. It is necessary to amend relevant mileage rules in view of consumer protection, because air mileage is not simple benefit but a right of mileage user.