MELBOURNE, Australia — Discount carrier Virgin Blue denied speculation Monday it could merge with the struggling airline Ansett.
Virgin Blue's Australian head of commercial activities, David Huttner, said reports of merger talks at a meeting Friday between Virgin boss Richard Branson and two Australian businessmen bidding to take over Ansett were nothing more than "speculation."
Ansett collapsed last September, weighed down by debt. It has since returned to the air with a reduced flight schedule and about a third of the 16,000 workers it employed at the time of its collapse.
Businessmen Lindsay Fox and Solomon Lew have launched a multimillion-dollar bid to take control of Ansett, which has been accepted by Ansett creditors and shareholders but has not yet been finalized.
"We had discussions with Ansett, but a merger is certainly something that has not been determined at this point in time," Huttner said. "We've discussed a variety of options and in no way would we indicate that we are moving towards any sort of possible merger."
Virgin boss Branson issued a statement in London denying reports in Australia that Fox and Lew's Tesna consortium was considering a takeover bid for Virgin Blue.
Huttner said talks covering several issues would resume between Tesna and Virgin Blue later this week. He did not elaborate.
He said Virgin Blue was talking to other potential strategic investors, but would only consider one that would take a minority stake.
"We'd never rule out most possibilities but we are willing to rule out that we will be doing a sellout," he said. "A merger is certainly not impossible but it is certainly not likely to occur."
Ansett continues to lose about $3 million a week as passengers stay away from its flights, apparently fearing it could collapse at any time and their tickets could become worthless.
Also, Tesna agreed to buy 30 Airbus A320 family airliners and take an option on another ten, Airbus said Sunday.