- United CEO Scott Kirby has floated a possible merger between United Airlines and American Airlines.
- The idea has reached senior US government officials.
- Sean Duffy has confirmed room for consolidation in the airline sector.
- Any deal would require asset divestitures and antitrust review.
- The carriers have held high combined capacity at Chicago O’Hare and Los Angeles.
United CEO Scott Kirby has suggested a possible business combination between United Airlines and American Airlines. The chief executive of United Airlines has floated the idea to senior government officials according to reports. United Airlines has declined to comment on the matter while American Airlines has not been immediately available for comment.
The discussion has come days after the US transportation secretary Sean Duffy has stated there is room for consolidation in the US airline industry. President Donald Trump has expressed support for big deals in the sector. Any potential merger would have to undergo review by antitrust authorities and would require the carriers to divest some assets.
A combined entity would operate fleets that total more than 2,100 aircraft with significant overlap at hubs such as Chicago O’Hare where the two carriers have held 82 pc of weekly capacity. In Los Angeles they have held 34.4 pc of capacity.
Scott Kirby shared “There is room for consolidation in the US airline industry.”
Sean Duffy shared “They’re going to have to peel off some of their assets to do this.”
