Virgin Atlantic Hold Talks Over BMI Merger

Virgin Atlantic has confirmed its interest in acquiring low cost airline Bmi and has held talks with its majority owner Lufthansa over the future of the British carrier.

A statement from Virgin Atlantic said the discussions “may or may not lead to an agreement” and that a further announcement would confirm the result in the near future. Virgin Atlantic chief executive Steve Ridgeway said any possible deal would present a “very compelling opportunity" that would put his airline in a stronger position to compete with British Airways.

Virgin Atlantic, a predominately long-haul airline would work will with the short haul flights currently operated by BMI, whilst also giving them access to BMI’s much coveted Heathrow slots. The news comes after it emerged that British Airways and Qantas Airways held talks about a merger to create the world's biggest airline.