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United Airlines CEO pitched American Airlines combination to US officials, sources say
The deal would create the world’s largest airline and faces antitrust scrutiny over competition and ticket prices, officials said.
- On Monday, United Airlines CEO Scott Kirby pitched a merger with American Airlines Group to U.S. government officials, according to sources familiar with the talks. The combination would create the world's largest airline.
- Kirby, who led American Airlines as president from 2013 to 2016, now heads United as it pursues growth opportunities. American faces profitability pressure and remains the smallest of the big four carriers at $7 billion market value versus United's nearly $31 billion.
- American, United, Delta, and Southwest each control roughly 17% of domestic traffic, making the industry highly concentrated. American shares jumped more than 5% in after-hours trading following the report, while United shares remained flat.
- Transportation Secretary Sean Duffy said this month there is room for industry mergers, but warned any deal would face close scrutiny on competition and consumer prices. Both the Transportation Department and Department of Justice would need to review and approve the transaction.
- If pursued, regulators would likely require the airlines to 'peel off' assets to prevent excessive market concentration. Such a merger would significantly reshape competition at major hubs including Chicago and Dallas.
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United CEO pitched Trump on possible tie-up with rival American
United Airlines Holdings Inc. Chief Executive Officer Scott Kirby has floated a possible combination with American Airlines Group Inc., according to people familiar with the conversations, an audacious proposition that would face intense scrutiny even under the business-friendly Trump administration.
·Chicago, United States
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United-American merger could raise fares, face scrutiny | Honolulu Star-Advertiser
A potential deal between United Airlines and American Airlines will create an industry behemoth and invite extraordinary scrutiny from regulators, labor unions and consumer advocates, all wary of higher fares and reduced competition.
·Honolulu, United States
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Total News Sources47
Leaning Left3Leaning Right9Center18Last UpdatedBias Distribution60% Center
Bias Distribution
- 60% of the sources are Center
60% Center
C 60%
R 30%
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