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Why American Airlines Opposes United Merger

Photo by Ross Sokolovski / Unsplash

American Airlines CEO Robert Isom has rejected the idea of a merger with United Airlines, calling it harmful to consumers and competition, according to a report by CNBC.

The report said United CEO Scott Kirby had floated the possibility of a tie-up earlier this year with a Trump administration official. Isom dismissed the proposal, saying combining two of the world’s largest airlines would be “anti-competitive” and ultimately bad for customers and employees.

According to CNBC, American Airlines confirmed it is not engaged in any merger discussions. U.S. President Donald Trump also opposed the idea, signalling resistance from Washington.

The report noted the administration is instead exploring a potential rescue plan for Spirit Airlines. Meanwhile, American is focusing on improving premium offerings to compete with rivals.

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