United Airlines reportedly approached Delta Air Lines last year about a potential merger that would have combined two of the largest U.S. carriers, according to The Wall Street Journal. United CEO Scott Kirby initiated discussions with Delta CEO Ed Bastian to explore the feasibility of a partnership combining the two major airlines.
Sources familiar with the negotiations confirmed that Delta’s leadership engaged in preliminary due diligence to evaluate the strategic benefits of the proposed merger. However, the talks ultimately stalled, and both airlines have since pursued independent growth strategies. United has also reportedly considered a potential merger with American Airlines earlier this year, though American CEO Robert Isom dismissed the idea as “anticompetitive.”
Antitrust regulators and state attorneys general would likely have scrutinized any merger between United and Delta, given their combined market dominance. While the airlines have denied the reports, the speculation highlights ongoing consolidation efforts in the aviation sector.
Image: [United Airlines Airplanes at Newark Liberty International Airport] Image: [Delta Air Lines Airbus A220-100 approaches John F. Kennedy International Airport] Image: [United Airlines CEO Scott Kirby]
Long Island City, NY: On Monday, United Airlines CEO Scott Kirby told the U.S. Chamber of Commerce’s Global Aerospace Summit that while mergers remain unlikely, the airline is exploring opportunities to acquire assets such as airport slots and gates.
“I think consolidation is unlikely for United,” Kirby said at the International Air Transport Association’s annual meeting in Rio de Janeiro. “That doesn’t mean we won’t still be in the market to buy assets, but consolidation is a low probability.”
Reuters contributed to this report.
