United CEO Scott Kirby says American Airlines has rejected the merger approach
'Barron's Roundtable' panels discuss investment opportunities among airline stocks.
United Airlines On Monday it announced it was ending its pursuit of a potential merger with American Airlines after its rival rejected the first round of talks.
United's CEO, Scott Kirby, in a statement published on Monday said he was American Airlines about a possible merger because “he thought we could do something amazing for our customers together.”
“I was confident that this combination, which would be incremental and non-diminishing, to create a really good airline that customers love, could get regulatory approval,” he said.
United Airlines CEO Scott Kirby said he thinks the merger with American Airlines will add value to consumers and competition, rather than diminish it. (Al Drago/Bloomberg via Getty Images)
“I was hoping to put that story to the Americans, but they refused to get involved and instead responded by closing the door publicly. And without a willing partner, this is a big deal that won't get done,” Kirby said.
AMERICAN AIRLINES CEO SAYS MEETING WITH UNITED WOULD BE 'BAD FOR CUSTOMERS'
American CEO Robert Isom On Thursday, he said the airline was not interested in a potential merger with United, saying it would be bad for all parties involved.
“The idea of the two largest airlines in the world coming together, that's something we viewed as anti-competitive and obviously everyone who has weighed in is suggesting the same thing,” Isom said. “It's bad for customers, it's bad for the industry and ultimately, that would be bad for American Airlines.”
| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| UAL | UNITED AIRLINES HOLDINGS INC. | 91.90 | -1.10 |
-1.18% |
Kirby acknowledged that “American public opinion makes it clear that a merger like this is off the table for the foreseeable future,” but said his view of the union between the United and the American involved in using the scale of an integrated airline to compete and lead globally.
BIPARTISAN SENATORS PRESS UNITED AND AMERICAN CEOS IN REPORTED MEETING OF MAJOR ORGANIZATIONS.
He wrote that the combined airline would have opportunities for global growth and expanded service to smaller communities, noting that both of those goals are “statistically enabled by having a larger network.”
Kirby said he thinks the merger between United and American will increase the number of economy seats in the market to offer. cost-conscious consumers affordable options and choice, while scale can improve the competitiveness of international airlines.
American Airlines CEO Robert Isom has ruled out a deal with United. (Nathan Posner/Anadolu via Getty Images)
He also hypothesized that the combined company “would create tens of thousands of new high-paying, integrated jobs with significant benefits that would lead to additional job growth opportunities for the 250,000 workers already in the United States and America,” and supported it. the manufacture of domestic aircraft.
UNITED AIRLINES MERGER TALK SHINES CLEAR ABOUT FUTURE OF AMERICA'S CHIEF EXECUTIVE, EXPERT SAYS.
Kirby said he understood the merger would attract skepticism because “previous mergers were about saving struggling airlines, previous legislation and regulatory review focus on getting rid of what's being lost,” while he thinks the merger proposal will be considered “a completely different proposal.”
| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| AAL | AMERICAN AIRLINES GROUP INC. | 11.68 | -0.42 |
-3.51% |
“Although our pursuit of negotiations with American has ended, our mission to build the largest airline in United's history is well underway. We have a winning strategy, a culture of innovation and 115,000 world-class aviation professionals working together to deliver for our customers,” Kirby wrote.
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“Although the airline industry has been volatile and unpredictable (one of the reasons I love this business), the future of United is brighter than ever,” he added.
