Low cost airline Ryanair has made a new offer for Irish rival Aer Lingus, two years after its first takeover bid failed.
In 2006 the European Commission blocked a €1.5 billion (£1.25 billion) takeover on competition grounds.
On Monday Ryanair, which already owns close to 30 per cent of Aer Lingus, said it was offering €1.40 (£1.16) per share in a new bid, valuing the airline at about €748 million (£624 million).
Ryanair chief executive Michael O'Leary said the airline industry had been forced to consolidate in the last two years due to rising oil prices and the global recession.
Thirty airlines have been forced out of business this year already.
In a statement Mr O'Leary said a merged Ryanair/Aer Lingus group would see the airline join an enlarged group of four major European carriers.
"This proposed merger of Ryanair and Aer Lingus will form one Irish airline group with the financial strength to compete with Europe's three major airline groups - Air France, British Airways and Lufthansa," he said.
Ryanair said 1,000 jobs would be created by the takeover, which would see both companies operate as separate brands in a similar way to Air France/KLM and Lufthansa/Swiss.
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