The head of British Airways, Willie Walsh, has said a shortlist of names has been drawn up for consideration in merger action.

Mr Walsh told the BBC that British Airways and Iberia had drawn up a list of up to 12 airlines which they hoped to either buy or merge with, once their own tie-up is completed.

Making a statement in Mumbai, where he was announcing a code-sharing deal with India’s Kingfisher Airlines, Walsh said he would like to bring more airlines together under the umbrella of the newly-created International Airlines Group, formed by BA and Iberia.

While saying there had been no talks yet with the airlines being considered, he said he wanted to "create a platform for like-minded airlines who believe that consolidation is part of the answer for the industry."