American airlines CEO Robert Isom discussed potential merger with rival United Airlines would harm consumers and be anti-competitive.
United CEO Scott Kirby pitched the idea of a possible merger with American to a Trump administration official earlier this year, according to people familiar with the matter, envisioning a global expansion that could encompass other international carriers.
“The merger of the two largest airlines in the world didn’t work out from the start,” Isom told CNBC’s Phil LeBeau on Thursday, shortly after the company reported its first-quarter results. “At the end of the day, there’s no way we can look at this as anti-complete, bad for customers, bad for American Airlines, bad for our team.”
Isom declined to say whether United had made a formal inquiry into American.
“I’m not going to go into details,” he said. On Friday, American issued a statement saying it was “not engaged in or interested in discussions regarding a merger with United Airlines.”
President Donald Trump came out against the idea earlier this week.
“I don’t like them to merge,” he told CNBC’s “Squawk Box” Tuesday morning. He added that he would, however, like to see someone buy the struggling discount carrier Spirit, but he also suggested the federal government could “help that one out.”
The Trump administration is currently in advanced talks on a Spirit bailout that could give the government a significant stake in the low-cost carrier, people familiar with the matter told CNBC.
American is lagging behind competitors United – of which Kirby was previously president – and Delta Airlinesand is trying to catch up by investing in high-end products, such as new planes and lounges.