United CEO brought merger idea to White House but considered it last fall
CNBC • • business
Key Points:
- United Airlines CEO Scott Kirby proposed the idea of a merger with American Airlines to the Trump administration earlier this year, having considered such a deal since last fall.
- The proposed merger would create the world's largest airline, but industry experts doubt it would clear regulatory hurdles due to its unprecedented scale in the U.S. market.
- United and American Airlines have not commented on the merger discussions reported by Bloomberg News.
- U.S. airline consolidation over the past two decades has resulted in four major carriers controlling about 80% of the domestic market.
- Kirby believes that increasing airline size is essential for better global competition, particularly on international routes like those to the Middle East, where customers often choose foreign carriers.
