EasyJet in talks to buy Go

LONDON, England -- British "no frills" airline EasyJet is seeking to buy its rival Go, the company said in a short statement.

The statement said that the exclusive negotiations were at an "advanced stage."

Go was set up by British Airways in 1998 but was sold last June to a management buyout team and the venture capitalist 3i, which has a two-thirds stake.

The Luton-based easyJet added that the move was part of ongoing plans to expand in the European short-haul market, which is enjoying a boom at the expense of traditional carriers.

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

It added: "Since September 11, these opportunities, including corporate transactions, have increased significantly and are under active consideration.

"In this context EasyJet announces that it is in exclusive negotiations with 3i Group and Go regarding the possible acquisition of Go."

News of the merger talks came just hours after European aerospace company Airbus said it was in discussions with Go over the sale of 75 aircraft.

EasyJet reported a 39 percent growth in year-on-year passenger numbers for March and is seen as an airline success story.