British Airways is considering how to use its 10 per cent holding in Iberia following Iberia's announcement that it has received a bid approach.

As part of this process, the airline has approached a number of private equity companies about making a consortium offer for Iberia. Any consortium bid would not involve further capital investment by British Airways. As well as a private equity partner, this consortium is likely to include one or more Spanish partners.

British Airways has not made a final decision about the future of its share holding in Iberia and continues to examine numerous options including full disposal. However, it has ruled out an independent bid for the airline.