EasyJet may fit the bill of a take over target for a huge aviation company, it has been reported.
The budget British airline is one of several companies that could be scooped up by International Consolidated Airlines Group (IAG) amid speculation that it is looking to takeover smaller rivals, it has been reported.
The consortium already owns British Airways, Iberia, Aer Lingus and Vueling, and is reportedly also considering a bid for Portuguese airline TAP.
The Lisbon government is set to sell off the Portuguese flag carrier after it returned to profitability this summer, the Times reported.
After reports of the speculation were reported for the first time on Monday, shares in easyJet rallied significantly, and have now seen an 11% rise since last week.
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Last week CEO Luis Gallego told reporters: “This Group was created as a platform for consolidation and I think the track record we have in that sense is very good.
"We only do what makes sense for the Group and in the past we have started some operations that we didn’t finish, like Norwegian for example, now we are in the middle of the Air Europa operation, it can happen or not.
"And in parallel, always we are screening the market to see if there are opportunities to be stronger. So, it is in some way what we are, we are a Group that wants to consolidate the industry.”
The CEO did not specifically mention easyJet as a target.
IAG was formed in January 2011 after a merger agreement between British Airways and Iberia, the flag carriers of the United Kingdom and Spain respectively.
EasyJet has not had the smoothest of years, in terms of financial performance and the experience provided to customers.
For the financial 12 months which ended on September 30, the company expects to make a pre-tax loss between £170million and £190million.
While that is a significant sum, it is a lot less than the £1.14billion from the financial year before.
Like the majority of airlines following a surge of holidaymakers and a shortage of staff, easyJet has also struggled to get all of its planes away on time - or at all - leaving some customers facing lengthy waits or even being stuck abroad.
Last week Stephanie Cocks told The Mirror how she'd been stuck on the tarmac for five hours along with fellow easyJet passengers, only for the flight to eventually be cancelled.
At the end of the wait a pregnant woman fainted, she claimed.
The company has also had its services disrupted by staff striking in Spain, with industrial action among pilots leading to dozens of cancellations this summer.
According to industry magazine Aviation 24, the "decision would make perfect economic sense, given that, together with Vueling, they would jointly create a European low-cost giant of the same size as Ryanair."
IAG, easyJet and TAP have been contacted for comment.
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