United Reportedly Approached Delta Air Lines About Potential Merger
Key Takeaways
- •United reportedly contacted Delta last year to discuss a potential merger between the two major U.S. airlines.
- •Delta evaluated the proposal through preliminary due diligence, but the discussions did not proceed.
- •A United-Delta combination would likely have drawn scrutiny from federal and state antitrust authorities.
- •United CEO Scott Kirby also reportedly explored a merger with American Airlines, which rejected the proposal.
- •Kirby has said United remains interested in buying airport assets, but views major consolidation as unlikely.
United Airlines reportedly approached Delta Air Lines last year to discuss a potential merger that would have combined two of the largest carriers in the United States.
United CEO Scott Kirby contacted Delta CEO Ed Bastian to propose the possible tie-up, The Wall Street Journal reported Sunday, citing people familiar with the matter.
According to the report, Delta’s leadership discussed the proposal and assessed potential benefits as part of what was described as “preliminary due diligence.” The discussions did not move forward, and both airlines ultimately moved on.
A United spokesperson told FOX Business the airline had “nothing to share.” Delta declined to comment.
A United-Delta merger would have carried major implications for the airline industry and likely would have drawn scrutiny from federal antitrust regulators and state attorneys general, The Wall Street Journal reported. Large airline combinations can affect route networks, hub competition, loyalty programs and access to airport capacity, making them a focus for regulators reviewing competition in domestic air travel.
The previously unreported discussions came as United has been working to broaden its global reach.
Kirby also reportedly explored a possible merger with American Airlines earlier this year. American rejected the proposal, and CEO Robert Isom criticized the idea as “anticompetitive,” according to the Journal.
Kirby has since played down the chances that United will pursue a major merger.
Last month, Kirby told Reuters that United remained open to purchasing airport slots, gates and other assets, but said a large consolidation deal was unlikely. Slots and gates are especially important at congested airports, where access can limit an airline’s ability to add flights even without pursuing a full corporate merger.
“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.