The head of United Airlines defended his vision for merging with American Airlines on Monday, arguing the combination would serve travelers better even though American has firmly rejected any talks.
Scott Kirby, United’s chief executive, released a statement explaining his belief that joining forces would focus on expansion rather than cuts, forming an exceptional carrier that passengers would embrace and regulators would approve. “I was hoping to pitch that story to American, but they declined to engage and instead responded by publicly closing the door,” Kirby stated in his announcement.
Stock prices for both carriers jumped significantly two weeks earlier when news broke that Kirby had discussed merging two of America’s largest airlines during a White House visit. On Monday, Kirby revealed he had directly contacted American about the potential partnership, though the timing relative to his Washington meeting remains unclear.
Following the White House discussions, American quickly dismissed any merger possibilities. The Texas-based carrier stated in an April 17 announcement that it had no interest in merger talks with United. “American Airlines is not engaged with or interested in any discussions regarding a merger with United Airlines,” the company declared, adding that such a combination would harm competition and consumers while potentially triggering antitrust issues.
American Airlines itself resulted from a 2013 combination with US Airways Group.
Former President Donald Trump also expressed opposition to the airline merger proposal last week.
In Monday’s statement, Kirby maintained that uniting the two well-known airlines would broaden flight options, establish a globally competitive carrier, and strengthen America’s economy through job creation and enhanced aircraft manufacturing.
United’s stock price dropped 1.4% Monday to $91.72, reflecting a roughly 20% decline since conflicts in Iran escalated in late February, driving fuel costs higher. American’s shares fell 2% during morning trading to $11.84, down approximately 15% since the conflict began.
