United Airlines reportedly approached Delta Air Lines last year about a potential merger that would have combined two of the largest U.S. carriers.
United CEO Scott Kirby contacted Delta CEO Ed Bastian to pitch the potential tie-up, The Wall Street Journal reported Sunday, citing people familiar with the matter.
According to the outlet, leadership at Delta discussed the proposal and evaluated the potential benefits as part of “preliminary due diligence,” but the talks did not advance, and both airlines ultimately moved on.
RYANAIR PASSENGER RECOUNTS BEING PARTLY SUCKED OUT AIRPLANE WINDOW: ‘I AM LUCKY’
A United spokesperson told FOX Business the airline had “nothing to share.” Delta declined to comment.
A merger between United and Delta would have had sweeping implications for the airline industry and likely faced scrutiny from federal antitrust regulators and state attorneys general, according to The Wall Street Journal.
NEW BOEING AIRCRAFT DEVELOPMENT HAMPERED BY BACKLOG OF EXISTING ORDERS, SAYS CEO
The previously unreported talks come as United works to expand its global reach.
Kirby also reportedly explored a possible merger with American Airlines earlier this year. However, American rejected the proposal, and CEO Robert Isom criticized the idea as “anticompetitive,” the WSJ reported.
UNITED TO OFFER TRAVELERS FREE FLIGHT CHANGES TO AVOID LANDING AT TRUMP INTERNATIONAL AIRPORT
Stocks In This Article:
Kirby has since downplayed the likelihood that United will pursue a major merger.Â
Last month, Kirby told Reuters that United remained open to buying airport slots, gates and other assets, but said a major consolidation deal was unlikely.
“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.
Read the full article here
