CEO of Chicago-based United Airlines floats idea of merger with American: report

CHICAGO (WLS) -- A mega merger between Chicago's two largest airlines may be in the works.

Scott Kirby, the CEO of Chicago-based United Airlines, has floated the idea of a merger with American Airlines to senior government officials, according to a report from Bloomberg. However, right now, it is unclear if the airlines are in the process of exploring a deal.

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If this possible merger has legs and is eventually approved by regulatory authorities, it will create the world's largest airline and significantly change the competitive landscape in U.S. aviation. Reports of a merger between United and American drew mixed reviews from travelers at Chicago O'Hare International Airport on Tuesday.

"I don't like it. I mean, it'll reduce competition," said traveler Steve Nied. "Higher fares, and maybe less availability."

Traveler Xavier Hale also weighed in, saying, "Smooth out some of the chaos, help both airlines, both employees for each company. I'm all for it."

ABC7 reached out to representatives from both airlines on Tuesday, and they each declined to comment. DePaul University Aviation Expert Joe Schwieterman says a combination of these airlines would control more than one-third of the U.S. market.

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"It is a bold, ambitious, and somewhat provocative proposal. There's just going to be furious opposition. There was not groundwork laid for this. So, I think it's got an uphill battle," Schwieterman said.

The U.S. airline industry has a long history of consolidation. However, some deals have stalled, including JetBlue's recent attempt to acquire Spirit Airlines, which was blocked on antitrust grounds.

"I think it's surprising on the numbers, as we do them in the antitrust world, to think that two of the four largest carriers could merge," said UChicago Law School Professor Randy Picker.

Picker teaches classes in antitrust.

"Market by market. How does it affect consumers? How is it going to affect labor? How will it matter for pilots and the mechanics on the ground and the flight attendants in the air?" Picker said.

Surprise talk of a merger comes as airlines deal with rising fuel prices brought by the war in Iran and as United and American's competition for more gates at O'Hare forced the Federal Aviation Administration to step in and demand the carriers reduce their summer schedules.

"The times don't feel right for a bold move like this, that would really shake up an industry with some potentially big negative effects," Schwieterman said.

Though a deal of this magnitude is likely to face significant scrutiny, some experts wonder if United Airlines sees a window of opportunity under the pro-business Trump administration.

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