American Airlines rejects idea of merger with United

The airline says such a deal would erode competition and raise antitrust concerns.
American Airlines has made clear it has no interest in merging with United Airlines, dismissing an idea floated recently by United’s chief executive Scott Kirby.

“American Airlines is not engaged with or interested in any discussions regarding a merger with United Airlines,” Fort Worth-based American said late on 17 April. “Our focus will remain on executing on our strategic objectives and positioning American to win for the long term.”

News broke this week that Kirby has for several months been eyeing American for a potential combination, a move that would create the world’s largest airline by a long shot — a carrier that would dwarf its next-largest US competitor.

Kirby even reportedly floated the idea to US President Donald Trump, arguing it would create a company better able to compete globally.

Such a deal, however, could be difficult to conclude due to its potential affect on competition and resulting likelihood of running afoul of US antitrust laws, even despite the Trump administration’s broad pro-business stance.

American cites competitive issues in rejecting the idea.

“While changes in the broader airline marketplace may be necessary, a combination with United would be negative for competition and for consumers, and therefore inconsistent with our understanding of the administration’s philosophy toward the industry and principles of antitrust law,” American says.

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