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Transportation Chief Signals Openness To U.S. Airline Mergers

The remarks signal openness under a process still led by the Justice Department.

Overview

  • Sean Duffy, in a CNBC interview Tuesday, said there is "room for some mergers" in U.S. aviation and noted that President Trump "loves to see big deals happen."
  • Duffy said any transaction would be reviewed case by case by the White House, the Department of Justice, and the Department of Transportation.
  • He added that larger airlines involved in a deal would likely need to divest assets to preserve competition and protect consumers from higher prices.
  • Reporters tied the renewed merger talk to a sharp jump in jet fuel costs linked to the war with Iran, which has increased pressure on smaller carriers.
  • No airline has filed a new merger proposal, though industry reports most often mention JetBlue as a potential target for a larger carrier.