Two U.S. senators are pressing United and American for answers following reports that a potential merger could be in the works.
Sens. Elizabeth Warren, D-Mass., and Mike Lee, R-Utah, sent a letter to United CEO Scott Kirby and American CEO Robert Isom on Sunday raising concerns about a possible linkup between two of the country’s biggest airlines. A merger, if realized, would reduce competition, the lawmakers said, opening the door to higher prices, lower wages for workers, and negative effects on smaller airlines, which would be unable to compete with an industry “behemoth.”
“A United-American merger could lead to increased prices for consumers, at a time when airlines are already squeezing flyers through higher fares and fees,” the lawmakers wrote.
Warren and Lee put several questions to Kirby and Isom, specifically whether or not a merger has been discussed, how such a deal would be “consistent with the public interest,” and if it could lead to higher fares and fees and the loss of jobs and routes.
The senators asked for a reply by May 3.
Bloomberg reported last week that Kirby pitched the idea of acquiring American to President Donald Trump and White House officials. He reportedly argued that the combination would make the resulting airline more competitive in international markets.
The news stunned the broader airline industry, and many analysts believe the linkup, if real, would have almost no chance of surviving the U.S. Justice Department’s antitrust review process.
American initially declined to comment on Bloomberg’s report, but on Friday it released a statement saying it was not exploring a merger with United and is not interested in one. The carrier said it would continue to work with the Trump administration to strengthen the nation’s airline sector.
Kirby has not spoken about the idea of a United-American combination since the news broke early last week.
