Virgin Express Holdings PLC and SN Brussels Airlines confirmed they have signed a non-binding letter of intent on a possible merger.

RYANAIR has joined with other European low-fares airlines to challenge new European Union legislation guaranteeing compensation to passengers who are denied boarding or are subject to flight delays or cancellations.

Virgin Express Holding NV said it is considering seeking compensation for the damage it suffered to its business as a result of illegal subsidies granted to rival Ryanair Holdings PLC.

THE Belgian region of Wallonia, facing charges it gives illegal aid to Ryanair at a local airport, said selling the site to private investors was one possible way to resolve the dispute with the European Union.

Ryanair is to challenge today's Court of Appeal decision in Nancy, which upheld a lower court's decision forbidding the payment of subsidies to the airline by Strasbourg's Chamber of Commerce.

Ryanair has reportedly established a stronger lobbying presence among other low-fare airlines, but the venture has been boycotted by leading rivals including EasyJet.

RYANAIR has failed to persuade its main competitors to join its planned lobby group for European low-cost airlines.

The ISEQ index of Irish shares closed up 16.98 points to 4,637.14 today.

No-frills airline Ryanair has rejected Virgin Express’s claim that its subsidies at Charleroi is affecting Virgin's business.

Virgin Express, the airline owned by Richard Branson, has cited Ryanair as a main contributor for a 63% slump in profit for the third quarter.

The boss of no-frills airliner Ryanair today threatened to pull out of Belgium if the EU declares the subsidies it receives at Charleroi airport are illegal.

Aer Arann has announced the introduction of its new reservations online booking and check-in system using the Openskies system provided by Navitaire.

Richard Branson’s Brussels-based airline Virgin Express today said it had increased profits in the last quarter by more than 50%.

MEPs today called for compulsory compensation of up to £375 (€595) for delayed or stranded air passengers - despite warnings from budget airlines that the move would certainly mean an end to bargain-basement fares.

Virgin Express airlines today said its second quarter profits had jumped by 38%, showing it has recovered following the September 11 terror attacks.

Virgin Express is to seek talks with Go, the budget airline set to be taken over by rival easyJet, in a move which could have implications for Ryanair in expanding the European budget airlines market.

Merger talks between SN Brussels Airlines, the successor airline of collapsed Sabena, and Richard Branson’s Virgin Express collapsed today.

The successor to Sabena is to be called SN Brussels Airlines.

Delta Air Transport - the successor to the bankrupt Sabena - may soon merge with Virgin Express.

British Airways has played down reports it was about to take its first step towards merging with Dutch rival KLM.

Efforts to develop a successor to Belgium’s failed national airline were thrown into doubt on Wednesday when a commercial court refused to extend bankruptcy protection to Sabena’s former in-house bank.

Virgin Express confirmed today it is in talks with the successor to collapsed Belgian state airline Sabena on a possible co-operation agreement, but denied that a merger is imminent.

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

Richard Branson’s Virgin express airline is thought to be close to a merger with a subsidiary of beleaguered Belgian airline, Sabena.

Sabena staff are demonstrating on the tarmac at Brussels Airport as the airline faces bankruptcy.

Sabena, the Belgian state airline, will file for bankruptcy next week, union officials said today.

Sir Richard Branson says Virgin Atlantic will survive the crisis surrounding the aviation industry.

Sabena is scrapping two of its three daily Belfast-Brussels flights.