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United Approached Delta About Potential Merger, Reporting Shows

Regulators would likely block a deal that would concentrate roughly one-third of U.S. domestic capacity.

Overview

  • Late July reporting by The Wall Street Journal revealed that United CEO Scott Kirby called Delta CEO Ed Bastian last year to pitch a possible merger.
  • Delta leaders carried out preliminary due diligence but the conversations stalled and the proposal did not advance.
  • Kirby had earlier floated a similar idea involving American Airlines that American’s board rejected and CEO Robert Isom called anticompetitive.
  • A combined United and Delta would control roughly 35% of U.S. domestic capacity and overlap on major hubs and international joint ventures, a market structure likely to draw intense review from federal antitrust officials, state attorneys general, and foreign regulators.
  • Kirby has since said a major consolidation is unlikely and signaled United will pursue growth by buying airport assets such as slots and gates, a strategy that could reshape competition at busy airports without requiring a merger.