Donald Trump<\/a>, floating the combination of the world\u2019s two largest carriers.<\/p>\nScott Kirby, who leads United, raised the prospect during an encounter with the US president in late February, Reuters reported, citing two unnamed sources. Such a deal would overhaul the global air travel industry \u2013 and likely face intense competition scrutiny.<\/p>\n
United declined to comment. American and the White House did not immediately respond to requests for comment.<\/p>\n
Including international flights, United and American were already the world\u2019s two biggest airlines by available capacity last year, according to OAG, the aviation data group.<\/p>\n
Shares in United rose 3.9% during early trading in New York on Tuesday. Shares in American climbed 9.3%.<\/p>\n
A combination between the two carries would be the largest consolidation move in the airline industry in at least a decade, combining the \u201cbig four\u201d of the US sector \u2013 United, American, Delta and Southwest \u2013 which collectively already control 74% of passenger capacity, into the \u201cbig three\u201d.<\/p>\n<\/figure>\nIt is unclear how Trump responded to Kirby\u2019s proposal. A merger between United and American would probably face staunch opposition from unions, rival airlines, lawmakers and airports \u2013 and spark fears around overlapping routes and job losses.<\/p>\n
Critics swiftly warned that any such deal would also have a detrimental impact on passengers.<\/p>\n
Ganesh Sitaraman, director of the Vanderbilt Policy Accelerator, and author of Why Flying Is Miserable, said: \u201cA potential United-American merger proves how broken the airline industry is in America \u2013 and would be an absolute disaster for the flying public. Fewer choices mean higher ticket prices, more fees, and fewer options for anyone who wants to get from point A to point B. Even the most permissive antitrust regulator should put their foot down at such a blatantly anticompetitive merger.\u201d<\/p>\n
But Capt Dennis Tajer, the spokesperson for the Allied Pilots Association, a union representing the 16,000 pilots of American Airlines, approached the report with an open mind.<\/p>\n<\/figure>\n\u201cWe have been very open about our concerns regarding American Airlines\u2019s financial, operational and customer service underperformance under the current management team,\u201d said Tajer. \u201cWe are always interested in and welcome ideas that will turn around our airline.\u201d<\/p>\n
Sean Duffy has suggested that there is scope for consolidation in the air travel industry, but stressed any deal would face close scrutiny. \u201cIf there was a merger between some of the larger airlines, they would have to peel off \u200bsome of their assets,\u201d the US transportation secretary told the CNBC news network last week. \u201cI am not \u200bgoing to pre-commit to anything.\u201d<\/p>\n
\u201cWho knows who is going to match up?\u201d Duffy added. \u201cIs there room for some mergers in the \u200baviation industry? Yeah, I think there is,\u201d he said, acknowledging there had been \u201c\u200ba lot of chatter\u201d about potential deals.<\/p>\n
Reuters contributed reporting<\/em><\/p>\n<\/div>\n
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