International Consolidated Airlines Group, the parent company of British Airways and Iberia, is weighing a takeover offer for Irish carrier Aer Lingus, according to people familiar with the situation.
Any deal will require the backing of Ryanair, which a 29.9 per cent stake in the company and the Irish government. It owns a 25 per cent holding, write Jane Wild, Arash Massoudi and Neil Hume
After a turbulent start to the year, Aer Lingus has seen its fortunes improve. Last month it increased its profit forecast for the full year after a rise in the number of passengers taking long-distance trips as Ireland's economy returned to health.
For IAG a deal would give it a significant increase in valuable take-off and landing slots.
Shares in Aer Lingus were up almost 9 per cent at EURO 1.97 in afternoon trading.