American Airlines CEO Rejects Potential United Merger as Anti-Competitive
Robert Isom says merger would hurt consumers; United CEO Scott Kirby floated idea to Trump administration earlier this year
Auf einen Blick
- American Airlines CEO Robert Isom said a potential merger with United Airlines would be anti-competitive and bad for consumers.
- United CEO Scott Kirby floated the idea to a Trump administration official earlier this year, but President Trump said he opposes the merger.
- American has issued a statement saying it is not engaged in or interested in merger discussions.
KI-generierte Zusammenfassung
Warum es wichtig ist
American Airlines has trailed competitors United and Delta in market performance and is attempting to catch up through investments in premium products, including new planes and lounges. United CEO Scott Kirby previously served as president at American before moving to United.
American Airlines CEO Robert Isom said a potential merger with rival United Airlines would hurt consumers and would be anti-competitive. United CEO Scott Kirby floated the idea of a possible merger with American to a Trump administration official earlier this year, according to people familiar with the matter, eyeing a global expansion that could take on other international carriers. "Merging the world's two largest airline together, that was a non-starter from the get-go," Isom told CNBC's Phil LeBeau on Thursday, shortly after the company reported first-quarter results. "At the end of the day there's no way to view that as anything but anti-completive, bad for customers, ultimately bad for American Airlines, bad for our team." Isom declined to say if United made a formal inquiry to American. "I'm not going to get into details," he said. On Friday, American issued a statement saying that it is "not engaged with or interested in any discussions regarding a merger with United Airlines." President Donald Trump said he was against the idea earlier this week. "I don't like having them merge," he told CNBC's "Squawk Box" on Tuesday morning. He said he would, however, like someone to buy struggling discount carrier Spirit but he also suggested that the federal government could "help that one out." The Trump administration is currently in advanced talks for a rescue package for Spirit that could give the government a significant ownership stake in the discount carrier, people familiar with the matter told CNBC. American has trailed competitors United — where Kirby previously served as president — and Delta Air Lines , and is trying to catch up through investments in premium products, like new planes and lounges.
Offene Fragen
- What specific terms did United propose to the Trump administration?
- What are the details of the Spirit Airlines rescue package?
- How will American Airlines compete with United and Delta going forward?




