International Consolidated Airlines Group, S.A. (LSE:IAG) is in exclusive talks to buy NIKI Luftfahrt GmbH, Air Berlin PLC's (XTRA:AB1) insolvent Austrian airline, a source close to the process said after Niki's administrator said that one bidder out of four remained. “IAG is the last remaining bidder and is still negotiating now,” the source said, adding that the company had put in the highest offer - a double-digit million-euro amount. Niki Lauda, Niki's founder, was quoted as saying on the website of newspaper Die Presse that he was out of the running.

A source said Thomas Cook was also out of the race. Die Presse also reported, without citing sources, that IAG was likely to be the last bidder. IAG and Thomas Cook's Condor subsidiary declined to comment.