It has been revealed that Aer Lingus has been holding discussions with other parties before fellow Irish airline, Ryanair launched a takeover bid for the company.

The talks for possible merger with other parties fell apart after Ryanair launched a _694 million hostile bid for the airline in June 2012. The deal has faced stiff regulatory opposition by the European lawmakers. Aer Lingus and Ryanair, both believe that the deal is unlikely to be approved by the European regulators. The UK Competition Commission has asked Ryanair to sell its stake in Aer Lingus from 30per cent to below 5 per cent.

The European Commission had issued formal objections to a new deal by Ryanair to takeover Aer Lingus alleging that the combining of the two Dublin based carriers would impact competition climate. Ryanair also said that it was informed by the European Commission that the _694 million takeover proposal is not likely to be approved.

Aer Lingus has been in separate discussions for a possible merger or acquisition as it is seeking to stabilize its operations in the region. Aer Lingus held confidential discussions with another party during the first half of 2012 for a possible deal, the latest documents released have shown.