Iberia drops bid for Spanair

0 Comments | AFP, May, 2008

MADRID (AFP) — Spanish airline Iberia said Thursday it has dropped its bid for SAS unit Spanair after failing to reach an agreement and was unlikely to revise it given the changed economic environment.

The Spanish flag carrier said in a statement that it decided to withdraw its offer because there had been no agreement.

Iberia launched a joint bid for Spanair, owned by Scandinavia's SAS, with private aviation company Gestair in February in a deal industry sources said was worth around 300 million euros (460 million dollars).

Iberia chairman Fernando Conte said the airline was unlikely to revise its bid.

"Time passes and the economic environment is changing," he said, noting the impact of record fuel prices on airline profits.

"We have to...