United Airlines has proposed a merger with American Airlines to the Trump administration as major U.S. carriers face mounting pressures.
CEO’s Direct Pitch to Officials
On February 25, United Airlines CEO Scott Kirby met with the Treasury Secretary in Washington D.C. during a Federal Reserve modeling session. He presented a collaboration plan between the two airlines, sources confirm.
The proposal drew limited immediate response from officials, and the companies maintain no formal ties.
CEO Emphasizes Flexibility
In a March interview on Bloomberg TV, Kirby stated, “American Airlines is preparing to hire back all of its workforce.” He added that both companies need “full flexibility.” When asked about incorporating American Airlines entirely, he replied, “We have to look at both. That’s the direction it’s going.”
Market Dominance and Risks
United and American rank among the top four U.S. airlines, alongside Delta and Southwest. A merger would capture about one-third of the domestic market, creating the nation’s largest carrier by size, analysts note.
However, such a deal could spark concerns among passengers, suppliers, regulators, and airline staff. Kirby highlighted that if the Trump administration acts as a headwind across the board, airline demand has already dropped sharply.
Regulatory Hurdles Ahead
U.S. airline mergers require approval from the Transportation Department and Justice Department. Transportation Secretary Sean Duffy told CNBC on the 7th, “The Trump administration likes things that create big businesses.”
Yet, he cautioned on major carrier mergers: “Market anxiety must be addressed first through analysis of increased market share and other factors before proceeding.”
Image: U.S. major airline executives, including those from American and United Airlines, at Denver International Airport on January 12 (local time). / AP
