BMI calms Virgin merger talk

BMI has moved to quell rumours the airline is in merger talks with codeshare partner Virgin Atlantic.

The carrier said it talks regularly with Virgin, but insisted a tie-up was not on the agenda. In a statement it said: "There are no ongoing discussions in relation to a merger.”

BMI chairman Sir Michael Bishop said: "We talk to all airlines from time to time and we have codeshare arrangements with Virgin, but all airlines around the world discuss issues.”

The move came after a Virgin spokeswoman said the two airlines had held talks on a "range of issues”, sparking rumours of a possible acquisition of Sir Michael's airline