United Approached Delta Last Year About Merging Airlines
Delta leaders reviewed the proposal in preliminary due diligence, but the talks stalled as United pursued a broader consolidation strategy.
- United Airlines CEO Scott Kirby approached Delta Air Lines CEO Ed Bastian last year to propose a merger combining two of the largest U.S. carriers, The Wall Street Journal reported Sunday.
- Driven by an ambitious expansion strategy, Kirby sought to build a U.S. mega-carrier to compete globally, arguing that industry consolidation could address the trade deficit and benefit consumers.
- Delta executives conducted preliminary due diligence on the proposal, assessing the merits of the unprecedented combination before ultimately rejecting the offer and moving on.
- Kirby's subsequent attempt to merge with American Airlines was rejected earlier this year by American CEO Robert Isom as "anticompetitive." United and Delta generated more than 90 percent of industry earnings last year.
- Antitrust hurdles remain a significant barrier to future mega-deals, with federal regulators and state attorneys general likely to oppose such consolidation. Kirby has since downplayed major deals, stating "consolidation is a low probability.
26 Articles
26 Articles
United’s Delta approach highlights the limits of airline consolidation
United Airlines’ reported approaches to Delta Air Lines and American Airlines point to an aggressive search for scale, but they also illustrate why major consolidation among the largest U.S. carriers remains difficult to execute. United CEO Scott Kirby contacted Delta CEO Ed Bastian last year to propose a potential combination, according to The Wall Street Journal. Delta’s leadership discussed the idea and conducted “preliminary due diligence,” …
Turns Out, United Has Been on a Wild Hunt for a Major Merger
United Airlines made headlines earlier this year when CEO Scott Kirby floated the idea of a merger with American Airlines. The marriage of the two largest airlines would have reshaped the aviation industry, but American did not take the bait. Now, thanks to the reporting of The Washington Post, we know that before Kirby approached American, he made a call to Delta CEO Ed Bastian to discuss a possible merger. Delta’s leadership discussed the meri…
Morning Business Report: United approached Delta about potential airline merger
(LILAMAX)- United Airlines approached Delta Air Lines last year about a potential merger that would have combined two of the most valuable U.S. carriers. According to an exclusive report from The Wall Street Journal, Delta leaders discussed the approach and merits of a possible deal as part of preliminary due diligence. The talks did not progress, and both companies eventually moved on from the proposal. A merger between United and Delta, two of…
United took chance for possible merger with Delta last year
News has emerged that the CEO of United Airlines, Scott Kirby, approached the CEO of Delta Air Lines, Scott Bastian, with a proposed merger. According to the Wall Street Journal, which spoke with people familiar with the matter, Kirby put in a call directly to Bastian to run the idea passed him. The US newspaper reported that Delta looked at the proposal and conducted “preliminary due diligence” to assess the benefits. Ultimately the merger neve…
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