US Transportation Secretary Sean Duffy said he believes there is room for consolidation in the US airline industry and that President Donald Trump “loves to see big deals happen”.

However, he added that he would not “pre-commit to anything” and that if there is a merger between two larger airlines, they will have to “peel off” some of their assets to avoid one carrier holding excessive market share and driving up consumer prices.

The current administration has already approved the acquisition of Sun Country Airlines by Allegiant Air. Separately, JetBlue Airways is reportedly seeking a merger partner, with Alaska Airlines (which is already integrating Hawaiian Airlines), Southwest Airlines, or United Airlines emerging as potential candidates. Frontier Airlines and Spirit Airlines have also explored the possibility of a renewed deal as the latter undergoes its Chapter 11 process.

Asked if he would like to see one of the larger airlines acquire a smaller carrier, Duffy said: “That’s going to come through us. But also President Trump, he loves to see big deals happen. He would have to review that kind of deal; it would have to go through the [Department of Justice], and it will come to the [Department of Transportation].”

He elaborated that there is ongoing speculation, and “a lot of different people are talking among themselves about what that should look like.” Asked whether the government would be comfortable with one of the “big four” carriers holding up to a 30% or 35% market share, Duffy said: “We have to look at it on a case-by-case basis. And again, if there were a merger between some of the larger airlines, they’re going to have to peel off some of their assets. We don’t want to have, you know, this massive infrastructure with one airline in America. I think that will affect price in the long run because it’ll be a lack of competition, which we love, competition. So again, I’m not going to pre-commit to anything.”