Willie Walsh, the CEO of the International Airlines Group (IAG), has reiterated the group's interest in their South American counterparts, LATAM Group.

Speaking during IAG's Capital Markets Day last week, Walsh told analysts that the group was willing to engage LATAM in constructive negotiations that would eventually pave the way for closer cooperation between the two sides.

Argentina's Reportur says Walsh alluded to possible merger plans which, if carried out, would help reduce IAG's dependence on the northern hemisphere.

"We believe there are more opportunities for consolidation in the industry," he said.

Walsh has consistently hinted about tie-up plans with LATAM. In 2013, he advocated an immunised joint venture with the South American operator similar to one already in place with American Airlines (AA, Dallas/Fort Worth) on the north Atlantic.

At present, cooperation between the two groups is limited to codeshare agreements with Iberia (IB, Madrid Barajas) and LAN Airlines playing a major role and British Airways (BA, London Heathrow) and TAM Linhas Aéreas (São Paulo Congonhas) a minor role.