Buzz is currently owned by KLM Royal Dutch Airlines, but will be bought by the Irish airline for 23.9m euros (£15.6m; $25.7m).

The last thing we need is the distraction of an acquisition Michael O'Leary, Ryanair chief executive

Ryanair also announced on Friday that it was to order 22 more planes from Boeing and had taken out options on a further 78.

The deal is worth $6bn (£3.6bn) at list price and the new Boeing 737s will be delivered within the next three years.

Bad timing?

Ryanair, which has so far avoided acquisitions, said the Buzz deal represented good value.

The Dublin-based group said it would close a number of Buzz's unprofitable routes, while increasing the frequency and reducing the cost of other routes.

"The timing of this acquisition is opportunistic," said Ryanair chief executive Michael O'Leary.

"Since Ryanair is growing strongly by rolling out our lowest fare services all over Europe, the last thing we need is the distraction of an acquisition.

"However there are a number of features of Buzz which makes this a favourable move at this time," added Mr Leary.

Both Buzz and Ryanair have major hubs at Stansted airport in the UK.

Ryanair said the deal would allow it to expand its reach from Stansted, where Buzz currently operates 21 routes.

"It's about consolidating the low-cost sector and strengthening their position at Stansted," a spokesman from the travel group TUI told BBC News 24.

'Nominal' fee

Ryanair described the cost of the deal as "nominal", and said it would be funded from its existing cash deposits.

It predicted it would be able double Buzz's passengers and turn around its performance.

"The management believe that by applying Ryanair's low fares/low cost formula, the traffic in Buzz can be increased this year from under 2 million to over 4 million passengers and the operating losses will be eliminated and profitability achieved."

Earlier this week, Ryanair announced it was to open its ninth European base at Stockholm's Skavsta airport.

New planes

Following the Buzz announcement, Ryanair said it was to buy another 22 Boeing 737 planes and had taken out options on a further 78 in order to meet its expansion plans.

Twelve months ago Ryanair announced an order of 150 planes from Boeing, made up of a mixture of firm orders and options.

"This means the European low-fair carrier has committed to 250 737-800s since January 2002," Ryanair and Boeing said in a statement.

"Of those commitments, 125 are orders and 125 are options."

Ryanair said the introduction of the new aircraft would create 3,000 new jobs at the firm, with 800 pilots, more than 2,000 cabin crew and 200 engineering and operational posts.

The order is also good news for Boeing which has been struggling following the downturn in the aviation sector since the 11 September attacks.