BA parent considering a bid for American Airlines

International Airlines Group, the company formed last year from the merger of British Airways and Spanish carrier Iberia, could make a bid for American Airlines in order to stop it falling into the hands of a rival.

BA has close ties to American, which is seeking a wealthy backer after filing for bankruptcy protection last year. The two airlines operate together on transatlantic routes to share costs, a partnership that IAG chief executive Willie Walsh has previously described as a the precursor to a formal merger.

Amid reports that rivals such as Delta and US Airways are now circling the troubled carrier, BA is said to be consulting brokers on a possible bid of its own.

Under American rules on foreign ownership, IAG will not be able to take a controlling stake in the company.

IAG yesterday said it would not comment on the matter.