United CEO Scott Kirby has pitched the idea of combining the Chicago-based airline with rival American, according to a report from Bloomberg.
Sources with knowledge of the matter told the financial news outlet that Kirby brought the idea to senior government officials. It was not immediately clear if American was aware of the discussions.
Bloomberg’s reporting was confirmed by Reuters late Monday afternoon.
Neither United nor American have commented on the story.
A merger of the two airlines would transform the U.S. airline industry, creating a colossal carrier with an enormous combined fleet. United and American already lead North America and the world in many annual metrics, including number of passengers transported.
American, however, has struggled with profitability, and unionized pilots and flight attendants there have argued that the airline risks being permanently surpassed by United and Delta.
No officials from the Trump administration have yet weighed in on the alleged proposal. In a possible hint at the White House’s thinking, Transportation Secretary Sean Duffy recently said the federal government is open to the idea of mergers in the airline industry, even ones involving the Big Four. But any linkup would have to be scrutinized for its potential effects on pricing and industry competitiveness, Duffy added.
