Virgin Atlantic has confirmed holding discussions with Lufthansa over the future of Bmi.

The German carrier recently acquired a controlling holding in Bmi, the second largest carrier at Heathrow.

Virgin Atlantic, which has courted Bmi for a potential tie-up in the past, now sees a renewed opportunity to forge a link.

“These discussions may or may not lead to an agreement and a further announcement will be made in due course,” Virgin Atlantic said in a statement.

The long haul UK carrier believes its network would sit well with Bmi’s mainly short-haul routes.

British Midland / Bmi founder Sir Michael Bishop exercised an option for Lufthansa to take control of the airline in October by raising its stake to about 80%.

Virgin Atlantic chief executive Steve Ridgway has made no secret of the attractiveness of a link with flyBmi, which controls 12% of take off and landing slots at Heathrow. Ridgeway sees the two businesses as complimentary and Branson wants a stronger competitoro British Airways.

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