British Airways today said consolidation of low-cost airlines was inevitable after rivals easyJet and Go announced they were in takeover talks.

Luton-based easyJet is seeking to buy Go as part of its plans to expand in the European short-haul market.

EasyJet admitted the negotiations were at an "advanced stage" in an announcement which came just two weeks after Stelios Haji-Ioannou, the airline's flamboyant founder and chairman, announced he was quitting.

But British Airways, which set up Go in 1998 before selling it last June, said it was "not surprised" by the move.

Spokesman Iain Burns said: "Given that we have six no-frills carriers in the UK, it was inevitable and entirely rational that sooner or later there would be consolidation."

The low-fare carriers have generally bucked the downward trend aviation has experienced since September 11.

Many business executives now shun the major airlines and favour the no-frills operators.

EasyJet said it was considering all possible opportunities for expansion, including the addition of new slots and routes.

EasyJet launched in 1995 and now flies to 45 destinations using 31 aircraft.

It runs flights from Gatwick, Luton and Liverpool, with overseas airport hubs at Amsterdam and Geneva.