The parent company of British Airways, International Airlines Group (IAG) may propose to bid for Norwegian Air Shuttle, an economical airline of Norway to augment its market share in the middle of mounting competition from budget-friendly carriers, reported BBC.

Norwegian Air Shuttle confirmed it had no prior knowledge that IAG had acquired a 4.6% stake till the news got public on Thursday. With the emergence of the news, share prices of Norwegian Air Shuttle went up by 47% and IAG’s shares fell 1.2%.

Although Norwegian Air Shuttle said it had no prior discussion with IAG about the same, IAG said the interest validates the ‘sustainability and potential’ of their business model and overall global growth.

IAG is of the opinion that it hasn’t finalised its decision to go ahead making an offer to the Norwegian airline said: “The minority investment is intended to establish a position from which to initiate discussions with Norwegian, including the possibility of a full offer for Norwegian.”