Scott Kirby, the chief executive of United Airlines, raised the prospect of merging with American Airlines during a meeting with President Trump last month, according to reporting from multiple outlets. The company has not publicly confirmed the conversation, and no active deal talks have emerged.
Shares of both airlines jumped significantly on Tuesday following the reports. Neither carrier has commented on Kirby's approach to Trump.
The episode offers a window into how corporate dealmaking has shifted in the new political environment. Major companies increasingly view the White House and senior Trump administration officials as the gatekeepers for antitrust approval, rather than relying solely on traditional regulatory channels.
A combined United-American entity would command roughly 34 percent of the U.S. airline market, dwarfing Delta, which holds about 17.8 percent. By contrast, the Biden administration's Justice Department blocked JetBlue's 2023 acquisition of Spirit Airlines, whose combined market share was just 8 percent, arguing the deal would reduce consumer choice and drive up fares.
The contrast highlights a sharp reversal in antitrust enforcement philosophy. The DOJ has lost multiple senior antitrust officials and prosecutors this year over disagreements on major settlements, including in the Live Nation-Ticketmaster case. That exodus has created uncertainty about the department's direction and accelerated the trend of corporations going straight to Trump or his top appointees.
Transportation Secretary Sean Duffy signaled last week that the administration sees potential for airline consolidation, though he stopped short of endorsing any specific deal. The reception from the new DOJ leadership remains unclear.
The shift in dealmaking strategy appears to be having measurable effects across the broader economy. U.S. merger and acquisition activity has surged 53 percent this year, a jump that analysts attribute partly to the new regulatory posture and the perception that approval now flows from the top.
JetBlue, blocked from its Spirit acquisition, is now hunting for a different merger partner, hoping a Trump-era regulatory environment might prove more receptive to airline consolidation than the Biden administration proved to be.
Whether Kirby's pitch to Trump was a serious overture or exploratory positioning remains unknown. What is unambiguous is that United understood the new rules of the game: major deals get pitched to the president first.
Author James Rodriguez: "The audacity of walking a merger straight to the Oval Office instead of waiting for lawyers is the story here, and it reveals how thoroughly the power dynamic has shifted."
Comments