Virgin Atlantic in Merger Talks with Lufthansa

Virgin Atlantic is interested in a merger deal with Lufthansa if the German carrier buys out BMI, according to a media report. Only the 49% share of VA owned by Singapore Airlines would change hands, with Sir Richard Branson retaining his current 51% stake.

This would leave Virgin America in a bit of an awkward position, with one of its key marketing partners (VA) and principal owners (Branson) entering a partnership with a firm (Lufthansa) that holds a major stake in their key competitor (jetBlue).