American Airlines rejects United Airline’s merger proposal

The rivalry between United and American has played out for years in pricing battles and disputes over gate access at major airports

American Airlines rejects United Airline’s merger proposal
John Scott Kirby, CEO, United Airlines

United Airlines’ CEO confirmed Monday that he approached rival American Airlines about a potential merger, his first public acknowledgment of his proposal-saying it would benefit travelers despite American’s refusal to engage in talks, reports AP.

“I was confident that this combination, which would have been about adding and not subtracting, creating a truly great airline that customers love, could get regulatory approval,” Scott Kirby wrote in a statement released Monday. “I was hoping to pitch that story to American, but they declined to engage and instead responded by publicly closing the door.”

Kirby’s confirmation comes after weeks of public speculation about a potential merger between two of the biggest U.S. airlines, amid rising jet fuel prices tied to the Iran war and reports that he had approached the White House about the idea. Kirby said Monday that he had approached American directly about a tie-up, but it’s unclear whether that was before or after his White House meeting.

American publicly shot down the idea of a merger, saying in an April 17 statement that it “is not engaged with or interested in any discussions regarding a merger with United Airlines.” Additionally, a combination of the two carriers “would be negative for competition and for consumers” and possibly raise antitrust concerns, the company said.

Fort Worth, Texas-based American Airlines is itself the product of a 2013 merger with US Airways Group.
President Donald Trump also said last week that he was against a merger of the airlines.

In his statement Monday, Kirby, who previously served as president of American Airlines, argued that merging the carriers would expand service, create a more globally competitive airline and boost the U.S. economy by creating jobs and strengthening the aircraft manufacturing sector.

The rivalry between United and American has played out for years in pricing battles and disputes over gate access at major hubs like Chicago’s O’Hare International Airport, where both airlines have fought to expand their footprint.