American Airlines says that it is not engaged in merger discussions with United Airlines because it’s obviously an antitrust problem and inconsistent with what the President would want (“our understanding of the Administration’s philosophy toward the industry”).
- United CEO Scott Kirby reportedly pitched the merger to President Trump
- So American doesn’t want to offend President Trump
- But come on man.
They do say they’re supportive of airline mergers, though (“while changes in the broader airline marketplace may be necessary”). They know that there’s dealmaking afoot. If it was someone else doing a deal they would be against it! So we can infer that they at least want to leave their options open pursuing JetBlue.
We appreciate the leadership and strong support of President Trump, Secretary Duffy and numerous other leaders in the Administration who have demonstrated expertise and an ongoing commitment to continue to improve the world’s best aviation industry.
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.
We look forward to continuing to work collaboratively with the Administration as it takes steps to strengthen the broader airline industry.
American says that are not engaged with these discussions. They did not say they have not had any such discussions with United over being acquired.
And they say that they are not interested, but that does not mean they couldn’t become interested at the right price. The Board of Directors has a fiduciary obligation to shareholders. It’s like the old apocryphal Winston Churchill story.
Chuchill asks Lady Astor, “Would you sleep with me for £5 million?”
She hesitates, then says, “Well… yes, I suppose.”
He follows up: “Would you sleep with me for 50 quid?”
She snaps, “Certainly not! What kind of woman do you think I am?”
Churchill replies: “We’ve already established that, madam. Now we’re just haggling over the price.”
The antitrust issues involved, however, are just too daunting even if the Trump administration were to sign off and enter a settlement. Too many states, private parties, and other countries get a bite at the apple. And a future administration could even sue to break the deal up.
It does seem notable that they waited until after market close on Friday to respond to merger speculation. This is news that came out on Monday.
Because it’s not happening and never was happening and even if it did happen it would get reversed.
@Peter — Happy 6x Citi Nights!
I think UA and AA went through more than any other carrier did during 9/11.
UA and AA employees deserve retirement stability of a company surviving and thriving, rather than one or the other fading and bringing long term strain on the rest of the airline industry in the USA.
@KlimaBXsst — Kind of you to sorta pretend to care about the workers for once. (A little odd to invoke 9/11 here though.) I think the existing companies, not merged, probably better serve both workers and consumers, though. Such a merger likely only benefits top executives, some shareholders, and the law firms who arrange it.
@1990 – agree it won’t happen without major divestitures that likely would ruin the merits of the deal. Also, theoretically, a Dem administration could break up the deal although that is pitched by the militant left wing and not more mainstream Dems. However not easy to put toothpaste back in the tube. If somehow this was greenlit in 2026/2027 and pushed through challenges too much Will would happened by Jan 2029 to undo it.
All theoretical since won’t happen but the threat to retroactively break it up is more virtual signaling than reality
If the JetBlue acquisition of a massively unprofitable and soon-to-be liquidated Spirit was blocked by a clueless DOJ and judge because it’s money-losing $49 fares would “increase” from Toledo, no way should UA be allowed to acquire AA.
Of course now would be a good time for Isom to reaffirm his standalone premium “vision” for American, he’s just waiting for someone to provide him a script…after the stock has dropped more than 75% from $58 in 2018.
@Retired Gambler — As I was joking elsewhere recently, the current President could nationalize all airlines and rename them after himself, all with his Congress and Court’s approval, just by slingin’ his Truth Social around on a whim, and these jabronis in the C-suite would all fall in-line.
Now, I’d even get on-board with all that vomit if there was simply an EU261 equivalent here, which would simply compensate us when the airline cannot operate timely. Bah!
I can imagine the press conference now: “He’s a businessman!!”
Mad Money: *Jim slaps the button* “BUY! BUY! BUY!”
Both airlines should have been shut down, liquidated and their executives imprisoned for catastrophic security failures. Instead, we got the TSA.
As the saying goes, sometimes you need to put heads on posts as a warning to others. Not to mention the prospect of hard time among the general inmate population having a way of focusing the mind.
@Denver Refugee — Could’ve happened with any carrier. The terrorists likely chose the ones they did because they had more symbolism than say Delta. If you must ‘go-there’ we could also play the blame game on the lapses of private security at BOS or EWR (pre-TSA). Also, why not, W probably should’ve read that CIA report in President’s Daily Brief on Monday, August 6, 2001 (but, I get it, reading is hard). Lotta coulda shoulda woulda. Highly recommend visiting the Memorials in NYC and elsewhere; they’ve done their best to maintain an objective record and to tastefully honor the victims. It’ll never be enough though.
AA just said that they are ok w/ being acquired by DL if it means torquing Kirby
United cannot be (and will not be) allowed to acquire American. Aside from the obvious issues of concentration, at least one, if not two, major carriers, would sue to block it, likely setting up a very lengthy and costly battle in the courts, which would result in both UA and AA walking away.
Future consolidation is very much on the table though and it will look something like this:
NK (adios, this basket case won’t survice)
F9 combines with Allegiant and its bizarre merger with Sun Country.
DL and AS combine.
WN and UA combine.
AA and B6 combine.
@ Tim — I heard Airlines for America (ie, American, Delta, United, et al) had just order a case of knee pads from Gavin Newsom. They are heading over to the WH for the weekend. Oil prices aren’t THAT high, nor have they been elevated for THAT long. Airlines need to suck it up and deal with it. NO AIRLINE BAILOUTS.