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United CEO Approached Delta About Potential Merger

If pursued a combination would confront major U.S. and foreign antitrust and regulatory hurdles that make approval unlikely.

Overview

  • Reporting shows United CEO Scott Kirby called Delta CEO Ed Bastian last year to pitch a possible merger, and Delta carried out only preliminary due diligence before the idea stalled.
  • Kirby also explored a merger with American Airlines earlier this year, but American rejected the proposal as anticompetitive, helping to blunt further progress.
  • There are no public signs of active merger talks now; United offered no comment, Delta declined to comment, and Kirby has publicly said a major consolidation is unlikely.
  • A combined UnitedDelta carrier would control roughly 35% of U.S. domestic seats and hold large overlaps at hubs such as New York and Los Angeles, a fact that would trigger scrutiny from the DOJ, state attorneys general, and multiple foreign regulators.
  • Even if talks resumed regulators would likely require major divestitures and could force the airlines to unwind international joint ventures and loyalty partnerships, a shift that could raise fares, reshape routes and affect airline employees and frequent flyers.