United CEO Says Major Airline Merger Unlikely After American Airlines Rebuff

United Airlines remains open to purchasing airport slots, gates, or other assets if higher fuel prices place weaker rivals under pressure, but the airline is unlikely to pursue a major consolidation deal after its failed overture to American Airlines, Chief Executive Scott Kirby told Reuters, Rajesh Kumar Singh and Joe Brock reported.

United Airlines aircraft are seen at an airport as CEO Scott Kirby signals that a major airline merger is unlikely following failed talks with American Airlines. (Photo: United Facebook)

Kirby said in April that American Airlines declined to engage after he approached the company about a merger, an idea Reuters reported he raised with U.S. President Donald Trump in February.

American Airlines CEO Robert Isom rejected the proposal, calling a tie-up anti-competitive and harmful to customers.

“I think consolidation is unlikely for United,” Kirby said in an interview on the sidelines of the International Air Transport Association’s annual meeting in Rio de Janeiro.

“That doesn’t mean we won’t still be in the market to buy assets, but consolidation is a low probability,” he added.

Kirby defended the rationale for a potential deal with American, arguing that it could have benefited consumers. However, he said a transaction of that size and complexity could not proceed without the support of American’s management team.

The United chief executive said labor groups, shareholders, and customers would likely have supported the merger, but American management’s public opposition made the proposal impractical.

“You can’t have the management team on record publicly saying it was anti-competitive,” Kirby said.