A dozen major international airlines are believed to be considered as possible takeover targets.

British Airways and Iberia have apparently compiled a shortlist of as many as 12 airlines which, once their own merger has been completed, they hope to join with or buy outright.

BA chief Willie Walsh has not identified any of the potentially involved airlines, although industry analysts believe that the emerging markets of India and China would be prime targets. Mr Walsh is eager to add to the newly-created International Airlines Group (IAG) umbrellas, which will the new creation of BA and Iberia.

Mr Walsh has told media that the group has already engaged a number of potential partners, with a host of meetings held to identify operators that would suit the philosophy and business model of the new group. A group of 40 has allegedly been whittled away to leave the prospective dozen, but not all will be pursued with the same vigour. BA has stated that it would look at a path of creating partnership platforms with like-minded airlines, specifically those who believed that consolidation was essential for modern survival. Mr Walsh has also spoken out in favour of full acquisitions rather than minority investments as a better economic viability.

Mr Walsh also pointed out that the initiative was at this stage little more than speculation, and that no direct talks had been had with any airlines. The last attempt, in 2008, saw a potential merger with the Australian national carrier Qantas unsuccessful.