“Virgin Atlantic can confirm that it is holding talks with Lufthansa regarding the future of BMI,” Virgin said in a statement.
“These discussions may or may not lead to an agreement and a further announcement will be made in due course.”
Lufthansa announced in late October that it had agreed to take over BMI by eventually raising its stake in the British airline to 80 percent. However Virgin Atlantic, led by British tycoon Richard Branson, had previously expressed a desire for a tie-up with BMI.