Following the news that United Airlines has been rebuffed by American Airlines following an approach over a possible merger, United CEO Scott Kirby has spoken out on the subject.
In a detailed commentary, Kirby explains that he understood that the only way that such a plan could have ever of been approved was if in the best interest of consumers and was ‘with a willing partner that shared my big, bold vision”.
“To be direct, here’s what happened: I approached American about exploring a combination because I thought we could do something incredible for customers together,” Kirby said. “Without a willing partner, something this big simply can’t get done.”
Kirby moved swiftly to distinguish his proposal from past airline mega-mergers, which regulators and consumer advocates have criticized for reducing competition, cutting capacity and eliminating jobs. His concept, he said, was rooted in expansion rather than consolidation.
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“In the past, airline mergers usually have been about two struggling airlines coming together to cut costs, flights and headcount,” Kirby said. “My aspirations could not be more different.”
According to Kirby, a United-American combination would have aimed to “add and not subtract,” creating a larger airline capable of investing more heavily in service, technology and global reach while avoiding higher prices for consumers. He said he believed such a deal could have earned regulatory approval precisely because it would be structured around growth and customer benefits.
However well intentioned his motives were for opening discussions for the merger, American have firmly, and publicly slammed the door in Kirby’s face. Following a statement that it wasn’t ‘engaged or interested in any discussions’ relating to a merger, American CEO Robert Isom went further when speaking to a CNBC reporter.
“Merging the world’s two largest airlines together was a non‑starter from the get‑go. There’s no way to view that as anything but anticompetitive and bad for customers”.
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