Irish airline Aer Lingus has rejected a takeover bid by British Airways’ parent company, International Consolidated Airlines Group.

In a statement, IAG confirmed that it had submitted an offer and that it had been rejected. The deal would have given it valuable extra take-off slots at Heathrow, as Aer Lingus is the third-biggest airline at the airport.

Aviation analyst John Strickland said: “A takeover would fit from an IAG position, but the airline would have challenges if it returns with another bid: there could be regulatory concern or challenges from other airlines on competition grounds – but not a show-stopper.

“Aer Lingus has been successful even against a difficult economic climate in Ireland, and a deal would give IAG an even stronger network position at Heathrow.”