Irish airline Aer Lingus has rejected a potential takeover from British Airways owner IAG.
Earlier in the week, shares in the carrier soared by 14 per cent after the Financial Times reported that IAG was considering a bid. However, a statement from the British Airways owner stated that Aer Lingus had turned down the offer which would have helped the Irish airline gain valuable landing slots at Heathrow Airport.
Any deal for Aer Lingus would have required the approval of Ryanair and the Irish government as they both have shares in the company. IAG was looking to add Aer Lingus to its growing portfolio which already includes Spanish carrier Iberia and low-cost airline Vueling. The company added that a potential takeover would not affect competition on popular routes or give it an advantage over take off and landing slots at airports such as Heathrow.
Confirming the proposal, IAG stated: "[It] notes the recent movement in the share price of Aer Lingus and confirms it submitted a proposal to make an offer for the company."
The news of a potential provided a boost for both IAG and Aer Lingus in early morning trading on Thursday (December 18th). Both companies reported increases with IAG seeing share rise by 4.5 per cent while Aer Lingus enjoyed a nine per cent bump.
Aer Lingus currently boasts a fleet of 47 Airbus aircraft serving a total of 10.6 million people every year. The airline provides a key link between the UK and the US with flights travelling from the likes of London, Manchester, Birmingham and Newcastle to various destinations across the pond with a layover in Dublin.
While the takeover would have helped to increase the airline's influence at Heathrow Airport, the company has decided against making that step.
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