American Airlines is speaking out over talks regarding a potential merger with 
United Airlines. On Friday, the legacy carrier issued a statement dismissing any discussions involving a combination of the two airlines.
The development comes less than a week after reports that United’s CEO, Scott Kirby, had pitched a merger possibility to the Trump Administration began to surface. While it was initially believed that Kirby had recently floated the idea, subsequent reports revealed that the executive had been mulling a merger as early as last fall.
American Is Not Interested In Merging With United
Credit: Shutterstock
American thanked the “leadership and strong support” from the White House for the “ongoing commitment to continue to improve” the aviation industry. The carrier expressed concerns that the merger would harm competition and consumers.
In its statement, the airline said it would continue to focus on strengthening the industry and being a leading carrier.
“American Airlines is not engaged with or interested in any discussions regarding a merger with United Airlines. 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. Our focus will remain on executing on our strategic objectives and positioning American to win for the long term.”
Putting US Carriers On The Global Stage
Credit: Shutterstock
A combination of two of the world’s largest carriers has never been attempted in the US; however, a slew of airline mergers over the past 20 years has left American, United, 
Delta Air Lines, and 
Southwest Airlines controlling about 80% of the domestic market. According to CNBC, Kirby’s main case in the merger pitch was that the next phase for US carriers should be focused on how to better compete on a global stage.
“We have customers that fly United almost all the time or they fly Delta, but when they go to the Middle East, it’s fragmented enough that they fly on Emirates,” he reportedly said on Ben Thompson’s Stratechery podcast in January. “If we’re bigger and have more offerings for those customers, possibly, it makes it more rational for them to fly us when they go to the Middle East.”
Several industry analysts and experts do not believe the merger has any ground as it would severely diminish competition and cause fares to rise. However, American has been struggling financially. Last month, Simple Flying reported on the Fort Worth, Texas-based carrier’s pilots’ and flight attendants’ disappointment over its management and leadership team. The union representing its flight attendants, the Association of Professional Flight Attendants (APFA), formally signaled its members’ intent to strike if changes in leadership were not implemented. 16,000 of American’s pilots are represented by the Allied Pilots Association, according to CBS News. Captain Dennis Tajer, a spokesperson for the union, said a United-American merger is “certainly intriguing.”
“We have been very open about our concerns regarding American Airlines’ financial, operational and customer service underperformance under the current management team,” Tajer said in a statement obtained by CBS News. “We are always interested in and welcome ideas that will turn around our airline.”
Check It Out
Mounting Pressure: Why Seatback Screens Could Make A Comeback At American Airlines
Months after removing seatback screens from narrowbody planes, American Airlines is looking to potentially bring them back after all.
The Fierce Competition Continues
Credit: Shutterstock
Since Kirby’s pitch and American’s dismissal, United has not commented further on the merger. The Trump administration has also remained quiet. On Wednesday, the White House told reporters that it is not weighing in on the merger talks at this time. Kirby was formerly an executive at American before joining United. Over the last year, Simple Flying has covered the fierce competition between the two carriers, specifically at their shared Midwest hub, 
Chicago O’Hare International Airport (ORD).
American had originally planned to operate over 500 daily departures from the airport this summer, following United’s plan to increase departures. However, the Federal Aviation Administration (FAA) announced that it will cap flights at ORD beginning next month to reduce delays. American will have two new gates to complement its Chicago operation. Late last year, struggling Spirit Airlines’ sold the gates for a price tag of $30 million.