Ryanair (FR, Dublin International) has denied ever having approached Norwegian (Oslo Gardermoen) over the acquisition of equity in its Scandinavian low-cost rival.

According to Reuters, a source familiar with developments said the Irish LCC approached Norwegian last year over the acquisition of around a 20% stake. CEO Bjorn Kjos is said to have had contact with Ryanair and even raised the issue with Norwegian's board.

However, Ryanair has since told Reuters that it made no such approach to Norwegian nor does it have any interest in it.

"Our CEO has repeatedly said we believe NAS (Norwegian) will go bust as oil rises to USD80 a barrel and we don't catch falling knives," the carrier said.

Earlier this week, CEO Michael O'Leary ratcheted up his rhetoric against the Scandinavians stating that Ryanair would be eager to snap up any aircraft that become available should Norwegian buckle.

“If something does happen with Norwegian, they have huge order books and a lot of those aircraft will be floating around," he told Bloomberg. "We would like to opportunistically be able to jump on some of them.”

Norwegian is rumoured to be the target of a third IAG International Airlines Group takeover bid.