Similar articles recently have reported that Richard Branson is still courting bmi for a take-over/merger with Virgin.
Interesting that bmibaby is being set up as a Ltd company with its own AOC, giving bmi greater flexiblitiy in any restructuring.
Also, Virgin has reserved the right to use the Virgin brand on European servies within 2 years after the SN Brussels/Virgin Express merger.
I feel sure British Virgin Airlines is not far from its begining.