United Airlines CEO Scott Kirby confirmed on Monday that he reached out to American Airlines about a possible merger.
The confirmation was made through a lengthy statement by Kirby which read:
“Over the last two weeks, there’s been a lot of commentary about a potential merger between United Airlines and American Airlines. And to be direct, here’s what happened: I approached American about exploring a combination because I thought we could do something incredible for customers together. I always knew that the only way any merger could be successful (and approved) is if it was great for customers and with a willing partner that shared my big, bold vision. 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. I was hoping to pitch that story to American, but they declined to engage and instead responded by publicly closing the door. And without a willing partner, something this big simply can’t get done.”
“In the past, airline mergers usually have been about two struggling airlines coming together to cut costs, flights and headcount. My aspirations could not be more different. The bold idea I wanted to pursue was about growth that would usher in a brand new era of leadership by U.S. aviation.”
“In the simplest terms, combining United and American could: 1) scale and grow that winning, customer-focused approach, 2) unlock incredible, new opportunities for both airlines’ customers, employees and the communities we serve and 3) create a great, new U.S. airline with the scale to compete and lead around the globe.”
“I recognized from the beginning that a merger this big in our industry would attract a lot of skepticism in the media, including from some government officials. Since previous mergers have been about saving struggling airlines, previous legal and regulatory reviews have always focused on subtraction and what’s being lost. But, a different kind of merger proposal – one that’s focused on growth, customer investments and global competitiveness – would have been a different proposition altogether. And, while divestitures in certain domestic markets obviously would have been required, I believe regulators would have approved such a deal because they would have recognized the benefits to customers, our shared employees and communities from coast-to-coast and around the world.”
“While our pursuit of talks with American have ended, our mission to build the greatest airline in the history of aviation at United is well underway. We have a winning strategy, a culture of innovation and 115,000 of the best aviation professionals in the world working together to deliver for our customers. While the airline industry has always been dynamic and unpredictable (it’s one of the reasons that I love this business), United’s future is brighter than it’s ever been.”
After Kirby’s proposal, American Airlines declined the idea, and last week, its CEO Robert Isom stated that such a merger would harm consumers and be “anticompetitive.”
Kirby also reportedly floated the idea to the Trump administration earlier this year. It is unclear how the President responded.
By CEO NA Editorial Staff
