Airline "in talks" with majority owner Lufthansa
Virgin Atlantic confirmed it is in talks over the future of bmi with the airline's majority owner Lufthansa.
According to reports, Virgin is interested in strengthening its position at Heathrow where British Airways currently dominates.
"These discussions may or may not lead to an agreement and a further announcement will be made in due course," said Virgin Atlantic in a statement.
Steve Ridgway, Virgin Atlantic's ceo said in October a tie up with bmi would be a "very compelling opportunity" making his airline a stronger competitor to BA at Heathrow.
BA currently holds 40% of Heathrow slots, versus bmi's 12% and Virgin's 3%.
The news comes just days after BA announced it was discussing a possible merger with Qantas, the outcome of which could create the world's first super airline.
BA is also in talks with Iberia and American Airlines, with talk of an alliance fuelled by the news of the application for anti-trust immunity.
Lufthansa bought a controlling stake in bmi from founder Sir Michael Bishop in October after he exercised a share option. The German carrier now owns 80% of bmi.
www.virgin-atlantic.com www.flybmi.com www.lufthansa.com