US airline United Airlines is reportedly in talks with the United States Federal Aviation Administration (FAA) to acquire Southwest Airlines for $1,9 billion, The Wall Street Journal reported.
The deal would require FAA approval.
It would be the largest acquisition in the history of the airline industry, according to The Wall St Journal.
“The FAA has expressed interest in acquiring Southwest Airlines and would consider other alternatives, according two people briefed on the matter,” the newspaper reported, citing unnamed people familiar with the talks.
Airlines are currently struggling to balance their budgets, as airlines are faced with a mounting number of budget airline bankruptcies.
Southwest Airlines, the second-largest carrier in the United Kingdom, has been hit hard by budget airline bankruptcy, and is seeking to shed $500 million of debt.
United Airlines, which has been struggling to meet its earnings, is expected to announce its first quarter earnings on Monday, which could be affected by the FAA deal.