NO-frills airline easyJet has announced further expansion plans, but has promised to keep fares low.

The Luton carrier is in takeover talks with rival Go, a former British Airways subsidiary, in a deal that could be worth about £400m.

Yesterday, easyJet said it had agreed an option to buy BA's German subsidiary Deutsche BA (DBA) at any time up to the end of next March in a deal worth about £30m.

Ray Webster, easyJet chief executive, said his company hoped to conclude the Go deal within the next few days.

On jobs, Mr Webster said that as far as the Go deal was concerned there would be "very few job reductions". As far as DBA was concerned he said some staff might be displaced including administration and secretarial posts.

He said easyJet was determined to continue to operate its own services from Luton and Go's from Stansted airport, in Essex, while the DBA operation would remain distinctly German.

Yesterday, easyJet announced that, for the six months to March 31, its revenues leapt 36 per cent to £194m while pre-tax profits came in at £1m.

Go also reported its results yesterday and said operating profits for the year to March 31 had soared 300 per cent to £17m while turnover jumped 46 per cent to £233.7m. The number of passengers Go carried was also up by 55 per cent to 4.27m