Scott Kirby's 'growth-first' merger vision: Why United targeted American Airlines

Investing.com -- United Airlines (NASDAQ: UAL) CEO Scott Kirby confirmed on Monday that he approached American Airlines (NASDAQ: AAL) about merger discussions, but the talks were rejected before formal negotiations could begin

Kirby said he contacted American Airlines over the past two weeks to explore a potential combination of the two carriers. American Airlines declined to engage and publicly closed the door on the proposal.

The United CEO said his vision for the merger centered on growth rather than cost-cutting, contrasting with previous airline consolidations that focused on reducing flights and jobs. He said the combined airline would have created tens of thousands of new unionized jobs and expanded service to smaller communities and international destinations.

According to Kirby, the merger would have scaled United’s customer-focused strategy across a larger network. He cited United’s investments in newer aircraft, free Starlink Wi-Fi, and improved technology as examples of enhancements that could have reached more travelers.

Kirby said the combined carrier would have better competed with foreign airlines, which currently operate about 65% of long-haul seats into the United States despite serving only 40% foreign citizens. He argued the merger would have supported American manufacturing through increased aircraft orders and boosted the U.S. economy through expanded domestic and international service.

The CEO acknowledged the proposal would have required divestitures in certain domestic markets but said he believed regulators would have approved the deal based on customer benefits and job creation.

Senator Richard Blumenthal opposed the potential merger on social media platform X, writing "My advice to United: don’t even try."

Kirby said United will continue its current strategy with its 115,000 employees.

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