Etihad Airways would be interested in buying Ryanair's near 30% stake in Aer Lingus as the budget airline struggles to take over its rival.
This is according to the airline's chief executive, who made the comments in an interview with Bloomberg in Australia today.
Etihad boss James Hogan said the airline, which already owns 3% of Aer Lingus, would be "very happy to have that discussion".
"Dublin is a strong, profitable route for us and we're very keen to strengthen our partnership there."
Etihad has also had talks about buying the Government's 25% stake in Aer Lingus as it invests in overseas airlines to help bolster traffic through its Abu Dhabi hub.
Ryanair's bid for Aer Lingus has drawn opposition from management and sparked a review by European Union regulators, who blocked a similar takeover in 2006.
Shares in Aer Lingus closed 0.4% higher at €1.07 while Ryanair shares were down 0.2% to close at €4.07 in Dublin today.
Etihad has already invested in Air Berlin, Virgin Australia Holdings and Air Seychelles, as well as securing 36 codeshare agreements, to assemble a global network.
Talks on a codeshare deal with Air France-KLM are under way, Mr Hogan said.
The Middle East company has few other carriers it is interested in buying into as it has ruled out "mega-carriers" and airlines based in North of South America, Mr Hogan said.
Ryanair has offered to buy out other Aer Lingus shareholders in a deal valuing the carrier at €694m. Aer Lingus has opposed the deal, saying the EU will probably veto it on competition grounds.
A spokesperson for Aer Lingus said it was "precluded from making any comment in regard to Etihad and its interest in buying Ryanair's stake in Aer Lingus, due to takeover panel rules."
Ryanair's Stephen McNamara also said today that the airline ''does not engage in, or comment upon, rumour or speculation."
Speculation could boost CEO shares
The speculation about the future ownership of Aer Lingus has increased the company's share price in recent weeks - a development which could significantly benefit the airline's CEO Christoph Mueller.
According to the Aer Lingus annual report, Mr Mueller would be granted 500,000 shares at an exercise price of 57 cent each, or a price at which he could buy them, if the shares remain above €1 each next month.
In June shares in the airline were below €1. But a bid from Ryanair has pushed the share price to €1.08 today making Mr Mueller's share options exercisable.
At current prices if Mr Mueller exercised all his options, he would be enjoy a paper profit of €250,000.
