Virgin confirms talks with Belgian airline

Richard Branson's Virgin Express airline has confirmed it is talking to a subsidiary of the collapsed Belgian airline Sabena about a possible deal.

However, the Brussels-based low-cost operator denies reports it is on the brink of a merger with Delta Air Transport.

A spokesman for Virgin Express said the two parties were "talking about a commercial agreement", possibly a deal to reduce overcapacity on some routes.

The moves came to light after a group of Belgian investors paid a symbolic one euro for Delta on Friday and raised €180m.

They had been in talks with Virgin Express for a number of weeks prior to the takeover, the spokesman for Virgin added.

Delta flies to a number of European cities, including Bristol, Newcastle upon Tyne and Birmingham, while Virgin Express operates a low-cost service to 14 European destinations, including London Heathrow.

Virgin Express, which was set up when Mr Branson bought EuroBelgian Airlines in 1996, has seen an uplift in fortunes since Sabena's demise.