Michael O'Leary, chief executive of low-cost airline Ryanair, said the company is interested in launching a takeover bid for London Stansted Airport, a UK newspaper reported on Friday.

A Ryanair spokeswoman declined to comment.

O'Leary told The Daily Telegraph he was convinced the UK Competition Commission's investigation into Stansted-owner BAA, which is controlled by Spain's Ferrovial, would recommend breaking up the airports operator, which would open the door for a bid of around GBP2 billion pounds (USD$3.9 billion).

"While we believe the break up of BAA would improve competition and, therefore, benefit airlines, a Ryanair bid would likely come under microscopic scrutiny from a competition perspective, as it is Ryanair's largest base," Goodbody Stockbrokers analyst John Goode said.

O'Leary also said that he would increase passenger numbers from 24 million to 40 million by halving landing fees and building a second runway and terminal.

The move comes after BAA this week started legal action against the airline after Ryanair refused to pay a 15 percent increase in landing charges at the airport, which is its biggest base.