Virgin Atlantic, jointly owned by Singapore Airlines and Richard Branson’s Virgin Group, has been quick to attack the proposed merger of British Airways and Qantas.

Virgin Atlantic chief executive Steve Ridgway said, “One day it’s Iberia, then it’s American, and now Qantas. The only strategy BA seems to have is to lock-up some of the busiest routes in the world, against the consumer interest”.

Virgin Atlantic, 49 percent owned by Singapore Airlines (SIA), but controlled by Richard Branson’s Virgin Group, competes with British Airways (BA) on the transatlantic route. SIA competes with Qantas from/to Australia.

MADRID (Thomson Financial) – Iberia Lineas Aereas de Espana SA has hired Morgan Stanley to prepare an upcoming bid for SAS’s Spanair, Cinco Dias reported, citing unnamed sources.

Air Nostrum is also studying a separate bid for the airline, although it and Iberia were in talks for a joint bid in the beginning, it noted.

The deadline for presenting letters of intention to bid is Feb 15.

Iberia is reportedly interested in the air carrier to consolidate the domestic market, seen as over-saturated and unprofitable.

However, it could face competition problems as it would likely take over Spanair’s slots in Barcelona’s El Prat airport, giving it a dominant position as with the T-4 terminal in Madrid.

Spanair is already the target of a bid by Grupo Marsans, while a Catalan consortium Promobarna, made up of the owners of Gadair, a savings bank and an Arab bank, is reported to be studying a bid.

The Portuguese carrier TAP has denied its interest, although its chairman, Fernando Pinto, continues to be enthusiastic to take part in an Iberian project, the newspaper said.