British Airways owner International Airlines Group (IAG) has confirmed that it is exploring a potential acquisition of low-cost carrier Norwegian Air Shuttle.

According to reports, IAG wants to boost its market share amid increasing competition from low-cost carriers.

IAG said it considers Norwegian to be an “attractive investment.” According to a statement, “the minority investment is intended to establish a position from which to initiate discussions with Norwegian, including the possibility of a full offer.” Representatives for Norwegian Air declined to comment.

Adding Norwegian would jolt IAG’s foray into low-cost, long-haul service into hyperdrive. The owner of British Airways has already expanded its discount Level and Aer Lingus long-haul divisions while adding European airport slots from failed U.K. rival Monarch Airlines. In February, IAG predicted higher earnings this year as prices gain, costs fall and the group expands capacity for Level.

“Everybody in Europe wanted to buy us,” Norwegian Air CEO Bjorn Kjos said in an interview this month. But the company has been investing in its aircraft, and he wouldn’t consider selling the business until the investments start paying out, he said. “If you decide to sell, that is when you take in other investors, but that has not been on our agenda at all.”

Source: Bloomberg