United Airlines CEO Scott Kirby has publicly detailed his vision for a merger with rival American Airlines, despite American’s outright refusal to engage in any discussions.
Kirby believes such a combination would significantly benefit travelers, even as American firmly shuts the door on the prospect.
In a press release, Kirby articulated his confidence that the proposed merger “would have been about adding and not subtracting, creating a truly great airline that customers love, could get regulatory approval.”
He added, “I was hoping to pitch that story to American, but they declined to engage and instead responded by publicly closing the door.” Kirby confirmed he had approached American directly about a tie-up, though the exact timing relative to reports of him floating the idea to the White House remains unclear.
American Airlines, however, swiftly rejected the proposal. Days after the White House meeting, the company issued a statement on April 17, declaring, “American Airlines is not engaged with or interested in any discussions regarding a merger with United Airlines.”
The Fort Worth, Texas-based carrier, itself the product of a 2013 merger with US Airways Group, further argued that a combination of the two airlines “would be negative for competition and for consumers” and could raise significant antitrust concerns.
The idea of a merger also drew opposition from President Donald Trump last week. In his Monday press release, Kirby countered these concerns, arguing that a union between the two iconic airlines would expand service, foster a globally competitive airline, and bolster the U.S. economy by generating millions of jobs and strengthening the aircraft manufacturing sector.
Shares of Chicago-based United fell 1.4% on Monday to $91.72. They are down about 20% since the war in Iran began in late February, sending fuel prices soaring. American shares were down 2% in morning trading on Monday, to $11.84. American is down about 15% since the war began.
