BA said it no longer wishes to take over Spanish airline Iberia.

British Airways (BA) confirmed on Monday that it has decided not to pursue its bid to increase its stake in Iberia.

BA already owns a 10% share in the Spanish airliner, however has decided not to execute its right to buy a further 30% from core shareholders BBVA and Logista.

BA’s Chief Financial Officer, Keith Williams, commented on the announcement: “British Airways’ position as Iberia’s key industrial partner remains important and is not dependent on an increase in shareholding. We will enter into discussions with Caja Madrid in order to maximise the value of our relationship with Iberia.”

Lufthansa is a possible contender for a share buy-out, after stating in May that it remained interested in Iberia. The German-based carrier, however, expressed concern that the likely asking price for the carrier was too expensive to justify a takeover.

By Natasha Piscitelli