United Airlines CEO confirms approach to American, says talks have ended

(Sharecast News) - The chief executive of United Airlines confirmed on Monday that he did approach American Airlines about a potential merger but said talks have now ended after its rival declined to engage.

Scott Kirby said in a statement: "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."

Kirby said that combining the two airlines could scale and grow "that winning, customer-focused approach", unlock "incredible" new opportunities for both sets of customers, employees and the communities they serve and create a "great", new US airline with the scale to compete and lead around the globe.

Among the potential benefits of a merger outlined by Kirby in his statement was the creation of "even more" value. The United CEO said a combination would have "dramatically" increased the total number of economy seats in the marketplace, offering cost-conscious customers more affordable ways to fly to more places and greater choices across all price points, while still delivering "industry-best" value to all customers.

Earlier this month, Bloomberg reported that Kirby had floated the idea of a tie-up with American Airlines in a February meeting with US President Donald Trump.