The chief executive of United Airlines said on Monday that the carrier was ending an attempt to negotiate a merger with American Airlines that would have created the world’s largest carrier by far.
In a statement on Monday, United’s chief, Scott Kirby, acknowledged for the first time that he had broached a merger, which he claimed would have generated significant economic benefits for the United States. But, Mr. Kirby said, American was unwilling to entertain his idea. After reports surfaced this month that Mr. Kirby had floated the proposal to President Trump, American shot down the prospect of a merger.
“I was confident that this combination, which would have been about adding and not subtracting, creating a truly great airline that customers love, could get regulatory approval,” said Mr. Kirby, who was a senior executive at American before joining United. “I was hoping to pitch that story to American, but they declined to engage and instead responded by publicly closing the door. And without a willing partner, something this big simply can’t get done.”
The combination would have helped to close what Mr. Kirby described as a “trade deficit” with foreign airlines, which he said carried a disproportionate share of Americans flying to the United States from far-flung destinations, he said.
In its statement this month, American said: “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.”
American’s chief executive, Robert Isom, and Mr. Kirby were colleagues at American and US Airways, which merged in 2013.
The reports this month that Mr. Kirby had floated the proposed deal to administration officials had set the aviation industry abuzz. Mr. Trump and his transportation secretary, Sean Duffy, have expressed an openness to deal-making among airlines. Mr. Trump specifically said he would “love somebody to buy” Spirit Airlines, which is in its second bankruptcy in two years and may be in advanced talks for a $500 million federal bailout.
Aviation experts and analysts say the moment may be right for airline mergers and acquisitions because of the administration’s willingness to approve such deals and the financial troubles of some smaller airlines.
