 Easyjet has seen a big rise in passenger numbers |
The owner of Iceland's national airline has bought an 8.4% stake in the UK low-cost carrier Easyjet. Shares in the Luton-based company had jumped 16% on Friday on speculation one of three Icelandic airlines may be considering a takeover attempt.
The Icelandair Group said it had bought shares as a "long-term trade investment to which it may add in the short-term".
Easyjet recently reported a 25% rise in passengers during September compared to the same month in 2003.
"We have a positive opinion of the Easyjet business model and we think that the company has a bright future," Icelandair chairman Hannes Smarason said.
Rival's denial
Rival Ryanair had earlier strongly denied that it was considering a takeover attempt of Easyjet.
"Hell will freeze over first," said a Ryanair spokeswoman.
Icelandair is the largest of 13 subsidiaries of the Icelandair Group.
Among the other Icelandair Group holdings are a cargo marketing company, a hotel group, car rental and travel agencies.
Any takeover attempt of Easyjet would need the approval of founder Stelios Haji-Ioannou, whose family still owns 41% of the company.
Shares in Easyjet, Europe's largest low-cost carrier after Ryanair, hit an all-time low late last month on concerns about rising fuel costs and competition.
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