American Airlines on Friday dismissed the idea of merging with United Airlines, saying in a statement that a combination of the two industry giants would be “negative for competition and for consumers.”
The unusual statement was issued days after news reports that United’s chief executive, Scott Kirby, had floated the idea in a meeting with administration officials, including President Trump. A merger would draw substantial opposition because it would create a behemoth twice the size of the next-largest U.S. airline.
American said it was “not engaged with or interested” in merger discussions with United.
“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,” the airline, which is based in Fort Worth, said. “Our focus will remain on executing on our strategic objectives and positioning American to win for the long term.”
United declined to comment.
Bloomberg reported on Monday that Mr. Kirby had broached the merger with Mr. Trump in February. Aviation and antitrust experts said that getting regulators to approve the combination would be difficult, even under Mr. Trump, who has taken a keen personal interest in big corporate mergers and acquisitions and has often spoken about them publicly. Even if federal officials were willing to approve the deal with conditions, state attorneys general could sue to try to block it.
The White House press secretary, Karoline Leavitt, told reporters this week that the merger was “not something the president or the White House have an opinion on or are weighing in on at this time.”
Some aviation experts also questioned the seriousness of Mr. Kirby’s proposal. These experts said United’s ultimate aim in discussing a merger with the administration might be to complete a deal to buy a smaller company, such as JetBlue Airways.
Before joining United, Mr. Kirby was a senior executive at American, which celebrated its centennial anniversary this week.
The airline industry is highly consolidated, with many economists describing it as a classic oligopoly. After three big mergers took place between 2008 and 2013, United, American, Delta Air Lines and Southwest Airlines have come to dominate U.S. air travel, commanding more than two-thirds of the market. At many major airports, a large majority of flights and gates are controlled by just one of those four carriers.
Niraj Chokshi is a Times reporter who writes about aviation, rail and other transportation industries.
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