United Airlines CEO Scott Kirby reportedly pitched a blockbuster merger with American Airlines during a recent meeting with President Donald Trump, two sources with knowledge of the situation confirmed to Reuters.
Kirby reportedly brought up the potential merger of two of the world’s largest carriers during a White House meeting on February 25, which was intended to discuss the future of Dulles Airport, the sources said. The meeting took place days before the U.S. and Israel launched its war with Iran, which has since led to jet fuel prices spiking and airlines raising the cost of fares and fees.
Kirby reportedly said that a combined airline would be a stronger competitor in international markets and acknowledged that the Trump administration had focused on U.S. trade deficits worldwide. Kirby had previously said that two-thirds of long-haul seats to and from the United States are foreign carriers, while only 60% of passengers are U.S. citizens, during an appearance at a forum in September.
Industry officials reportedly believe that the odds of a merger between the two companies is slim as it would likely face opposition from unions, rival airlines, lawmakers and airports, as well as the fear of route overlapping and job losses. A source close to the White House said there was skepticism given the potential impact on competition and ticket prices as the Trump administration is already focused on increasing costs heading into the midterm elections.
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