Virgin Atlantic is in discussions with Lufthansa concerning the future of BMI, in which the German carrier is shortly to hold an 80% share.
The UK long-haul operator has frequently identified BMI as a good prospective partner.
In a statement today Virgin says: "Virgin Atlantic can confirm that it is holding talks with Lufthansa regarding the future of BMI.
"These discussions may or may not lead to an agreement and a further announcement will be made in due course."
Virgin Atlantic chief Steve Ridgway has previously commented on the strategic fit between Virgin's long-haul services and the short-haul operation of BMI at London Heathrow, saying this would "make a lot of sense".
Combination of Virgin and BMI at the London hub would create a strong rival to British Airways at its home base.
Source: Air Transport Intelligence news
