Virgin's Branson Sees `Logic' in Link With BMI, Telegraph Says

By Abigail Moses

Aug. 31 (Bloomberg) -- Virgin Atlantic Airways Ltd. owner Richard Branson sees ``considerable logic'' in his airline merging with rival U.K. carrier BMI, he said in an interview with the Sunday Telegraph.

The combined airlines would create a more formidable competitor to British Airways, he said in the report. Virgin isn't currently in talks with BMI or BMI's second-biggest shareholder Lufthansa, the paper said, citing unidentified people close to the company.

Virgin has hired Credit Suisse Group AG to prepare the company for its role in an expected consolidation of the airline industry, the paper said, citing the people close to the company.

To contact the reporter on this story: Abigail Moses in London Amoses5@bloomberg.net