Sir Richard Branson's Virgin Express is to seek talks this week with venture capital backers of Go, the budget airline set to be taken over by rival easyJet.

The Brussels-based carrier wants to discuss expansion opportunities with 3i, although it is not known if it is considering a counter-bid for the former British Airways business.

Virgin Express chairman David Hoare has confirmed he would app-roach 3i this week.

The interest was prompted by Friday's surprise announcement that Luton-based easyJet was in the advanced stages of takeover talks with Go.

Some analysts believe a deal, thought to be worth £400 million, could be unveiled at the same time as easyJet's interim results tomorrow.

But Virgin Express said easyJet's stock market announcement had alerted Mr Hoare to possible opportunities in the sector.

A spokesman said: "He is planning to have a meeting with the people at 3i because this is an interesting development in the European market.

"We want to see if we can not be involved in some way."

The discount airline, in which Virgin Group has a 59 per cent stake, failed to agree merger terms with Sabena successor SN Brussels Airlines earlier this year.

But it has moved into profit after a radical shake-up of the business, including the scrapping of a number of unprofitable routes.

It is now focusing on expanding and said last month it would consider a second European hub once it had built up its Brussels network.

Go, which started as a British Airways subsidiary in May 1998 under the leadership of American Barbara Cassani, became independent from BA last year.

British Airways (BA) carried 4.5 per cent fewer passengers last month than in April last year.

The airline said traffic levels continued to be stable. The figures reflected the April 2001 figures including Easter, which was in March this year.

In total, BA carried 3.07 million passengers last month compared with 3.21 in April last year.

The biggest fall in traffic was on Asia Pacific routes.