United Airlines CEO Scott Kirby sent shockwaves through the industry when he pitched the idea of a potential merger with rival American Airlines earlier this year.
American promptly shut down the rumor in a public statement in April, while lawmakers sounded the alarm over massive antitrust concerns associated with an acquisition of that magnitude.
Several months later, Kirby is still convinced a United-American combined company could not only work, but thrive amid today's soaring fuel costs and benefit the traveling public in the process.
"I think the biggest impediment is having a willing partner. I am more convinced today than I was when I wrote my note six months ago that it could get approval," Kirby said at Yahoo Finance Invest this week.
"It could get approval because it is good for customers," he added. "So many people look at that kind of a merger through what has been the traditional airline commodity lens, that air travel is a commodity, and it doesn't matter which airline flies. But customers care about the service, the product, the technology, the reliability."
"It wouldn't be easy. We'd have to do some divestitures, but I 100% think it could get approved," said Kirby.
Considerable hurdles remain in United's path to consolidation, beginning with needing "a willing partner," as Kirby points out.
However, the climate would appear better suited for a mega merger now than when the veteran executive first broached the subject this past spring.
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