Virgin Atlantic has taken a chance in forging a tie-up with bmi, a British airline, directly after Lufthansa, a German carrier, announced that they are poised to be the majority shareholder of bmi.

Virgin Atlantic’s proposal is to combine their operations with bmi for £318 million, which is a deal that may create a super-airline in Europe. Lufthansa now has an 80% hold in bmi and is anticipated to make a bid on the last 20%, which Scandinavian Airlines owns. Scandinavian Airlines has put the stake and themselves up for sale.

The offer from Virgin Atlantic was vague, but it is understood to include buying bmi from the German carrier or integrating the operations of all 3 of the airlines in a partnership that could make a dominant carrier in Europe. Lufthansa hasn’t expressed an interest in putting bmi up for sale, as they are leading a consolidation wave in the airline sector instead.

Steve Ridgway, the Chief Executive of Virgin Atlantic, said that bmi would fit nicely with their airline, providing a stronger competitor at the Heathrow Airport against British Airways. There is an extremely compelling chance for a collaboration, he continued, and the two airlines are complementary. Virgin Atlantic is a long-haul carrier, and bmi is mainly a short-haul airline, he added, and it would make their performance better, as well as raise the competition they are providing to the market.

A partnership between Virgin Atlantic and bmi would let Lufthansa use the Virgin brand, which is better-known, in order to extend their services internationally, particularly at the Heathrow Airport.

Learn more about these airlines go to www.flybmi.com for info on bmi; www.lufthansa.com for info on Lufthansa; and www.virgin-atlantic.com for info on Virgin Atlantic.