If successful, a combination of EasyJet and Go would create Europe's largest low-cost carrier, carrying more passengers than Ireland's Ryanair.

Analysts' valuations of Go vary widely between £200m and £600m. Go chief executive Barbara Cassani, recently named businesswoman of the year, will pocket around £16m from the takeover as she owns a 4% stake in the airline.

To cope with the rapid pace of growth, the chief executive, Ray Webster, said that EasyJet was likely to increase its order of 75 aircraft from either Boeing or Airbus. He said the airline was considering buying larger planes, to carry more than the usual 150 passengers on each flight.

Mr Webster criticised the present leader, Ryanair, saying that its policy of using secondary airports meant "every time they announce a new destination you have to get a map out to find out where it is".

Go's biggest shareholder, venture capital group 3i, has opted to sell against the wishes of the airline's boss Barbara Cassani.