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Virgin, Etihad Consider Lufthansa’s BMI Partnership, FT Reports

Virgin Atlantic Airways Ltd. and Abu Dhabi’s Etihad Airways are in discussions about partnering if Virgin pursues a bid for Deutsche Lufthansa AG’s U.K.-based BMI unit, the Financial Times said.

Offers for BMI were required to be submitted this week, with Virgin bidding alone, the newspaper said, citing a person familiar with the situation. Etihad Airways cannot pursue an offer alone because of foreign-ownership rules, the FT reported.

Virgin Atlantic spokeswoman Jo Foster declined to comment on the report when contacted by Bloomberg News today.

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