On December 6, British Airways Chairman Martin Broughton said he expected more consolidation in the aviation industry but investors should be careful about selling their shares to predatory private equity firms.

Asked to comment on a private equity bid for Australia's Qantas Airways Ltd, Broughton said he expected other airlines to be targeted by prospective buyers.

"I can easily see opportunities for private equity ... to acquire assets on the cheap pending the consolidation play," Broughton told an aviation industry lunch in London.

"I think all investors should be very concerned and alert to not sell their assets on the cheap to interim consolidation players."

British Airways, Europe's third-largest airline, has not been the target of any bids so far and has indicated it does not want to take part in consolidation until Europe and the United States agree an "open skies" deal to open up the transatlantic markets to free competition.

Qantas is being courted by a consortium led by Australia's Macquarie Bank Ltd and Texas Pacific Group.