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American Airlines rejects merger talks United Airlines

American Airlines announced 'on Friday' that it is not interested in a merger between United Airlines, and that no such talks have taken place. This has diminished the prospects of a deal that could reshape the industry but would be subject to tough scrutiny by regulators.

The combination of two major U.S. network providers would be the biggest consolidation in over a decade. It would further tighten a domestic market that is already dominated by 4 similar-sized players.

The regulators, unions and consumers would be'very concerned about the increased fares and decreased competition.

United Airlines CEO Scott Kirby discussed the possibility of merging with American Airlines during a meeting that he had with U.S. president Donald Trump in late February.

The meeting took place three days before the U.S. - Israel war against Iran, which sent jet fuel costs soaring. Airlines have since raised fares and fees in order to offset the higher costs.

American Airlines said in a press release that while changes to the airline industry may be needed, a merger with United would have a negative impact on competition and consumers. This is in conflict with the Trump Administration's approach towards the industry and the antitrust laws.

United Airlines and White House didn't immediately respond to requests for comment.

The White House previously stated that it had no opinion about a possible United Airlines merger with American Airlines. (Reporting by Megavarshini G. Somasundaram in Bengaluru; Editing by Pooja Desai)

(source: Reuters)