United Airlines CEO plays down merger talk as White House signals skepticism

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By Rajesh Kumar Singh

CHICAGO, April 22 (Reuters) - United Airlines CEO Scott Kirby connected Wednesday played down speculation astir a imaginable tie-up with American Airlines and declined ‌to remark connected reports helium had floated the thought to the White House.

"We've ‌seen a batch of property sum regarding consolidation rumors. We've not commented specifically connected those reports and aren't going ​to commencement today," Kirby said connected United's net call.

He said his earlier comments reflected long-held views astir the hose manufacture but were being interpreted otherwise successful airy of the merger reports.

Kirby raised the thought of a operation with American during a gathering with U.S. President Donald Trump successful ‌late February, radical acquainted with ⁠the substance told Reuters past week. The gathering had been scheduled to sermon the aboriginal of Washington's Dulles airport.

American has said it is not ⁠interested successful pursuing a deal.

"Everything that I've said … are things that I person said successful the past," Kirby said, adding the comments were being viewed otherwise "because of the rumors that came retired ​last week."

In ​an interrogation with Reuters connected Tuesday, U.S. Transportation ​Secretary Sean Duffy called the connection "interesting" ‌but said United would request to marque a stronger lawsuit for consumers.

Trump said connected Tuesday helium opposes a imaginable merger betwixt the 2 airlines.

FOCUS ON GLOBAL COMPETITION

Kirby framed his reasoning successful presumption of semipermanent competition, arguing that U.S. airlines look structural disadvantages against ample carriers successful the Middle East and Asia.

"There is this large planetary commercialized deficit," helium told analysts connected Wednesday, ‌referring to planetary aviation, but did not spell ​out what changes mightiness beryllium needed, saying immoderate solution ​would travel with "complications."

He emphasized that United's maturation ​has travel from winning customers crossed segments alternatively than relying connected ‌consolidation. He pointed to investments successful onboard ​products and exertion and ​said the attack has helped the hose execute powerfully contempt a crisp emergence successful substance costs.

Kirby besides highlighted the relation of partnerships, saying United's planetary scope is supported ​by its Star Alliance network, ‌which allows it to service destinations that would not beryllium viable connected its ​own.

"I deliberation it's highly improbable that we'll unfastened a overseas hub anywhere," helium ​said.

(Reporting by Rajesh Kumar SinghEditing by Rod Nickel)

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