United reportedly approached Delta Air Lines about a potential merger - Fox Business

What the report says

Fox Business reported that United Airlines approached Delta Air Lines last year about a possible merger that would have joined two of the largest carriers in the United States. The report, citing The Wall Street Journal and people familiar with the matter, said United CEO Scott Kirby contacted Delta CEO Ed Bastian to raise the idea.

According to Fox Business, Delta’s leadership reviewed the proposal and considered potential advantages during an early due-diligence process, but the discussions did not move forward. A United spokesperson told Fox Business the company had “nothing to share,” while Delta declined to comment. The article said both airlines ultimately moved on from the preliminary talks.

Such a transaction would have been highly significant for the U.S. airline sector because United and Delta are among the country’s dominant network carriers. Fox Business, citing the Journal, noted that any combination of that scale would likely have drawn close examination from federal antitrust officials and state attorneys general, given its potential effects on competition, routes, airport access and consumer choice.

The report also placed the Delta approach in the context of United’s broader growth ambitions. Fox Business said Kirby separately explored a possible merger with American Airlines earlier this year, but American rejected the idea and CEO Robert Isom criticized it as anticompetitive, according to the Journal. Kirby has more recently played down the prospect of a large United merger, telling Reuters at an industry meeting in Rio de Janeiro that consolidation was unlikely, while leaving open the possibility of buying airport slots, gates or other assets.