Transportation Secretary Sean Duffy has signalled approval for possible mergers between U.S. airlines amid rising jet fuel costs.

Trump Loves Big Deals

In an interview with CNBC on Tuesday, Duffy was asked about the Donald Trump administration’s view on possible airline mergers, to which the Transportation Secretary responded that it would depend on various factors. “That’s going to come through us [Department of Transportation], but also President Trump,” Duffy said, adding that Trump “loves to see big deals happen.”

He also shared that any such deals would need to be reviewed by the administration, but said that there was “room for some mergers in the aviation industry” in the U.S. He also shared that there was a “lot of chatter” about mergers in the aviation industry, but he would gauge the impact of any proposals on “competition” within the sector, as well as pricing for consumers.

“I’m not gonna pre-commit to anything, I’m gonna look at what comes through my desk and the President would look at that as well,” Duffy said, adding that any deals would also mean airlines would “peel off some of their larger assets.”

JetBlue’s Potential Sale, FAA Bolsters Staff

The news comes amid buzz around the potential sale of JetBlue Airways Corp (NASDAQ:JBLU) as the airline had reportedly sought advisers to evaluate a potential sale, as well as test the waters of how a merger with the likes of United Airlines Holdings Inc (NASDAQ:UAL), Alaska Air Group Inc (NYSE:ALK) or Southwest Airlines Co (NYSE:LUV) could be perceived by regulators amid antitrust fears.

During the interview, Duffy also expanded on the Federal Aviation Administration’s (FAA) efforts to bolster its air traffic controller staff following reports that the agency sought to hire over 2,300 trainee controllers amid staff shortages stemming from last year’s government shutdown.

Air Canada Crash

Duffy had also shared the need for modernized air traffic control equipment and a stronger workforce following the Air Canada crash in New York’s LaGuardia airport. The DOT had sought an additional $19 billion to modernize the equipment over the already-approved $12.5 billion funding package.

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