Now it is being reported that BOTH bids could actually go ahead...
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Australian transport giant closer to controlling Virgin Blue
Virgin Blue and Lang Corporation will meet with Ansett's administrators tomorrow to discuss the sale of Ansett aircraft and terminal space.
It comes as Virgin Blue's Richard Branson agrees to sell his majority interest in the airline to Lang.
The agreement would involve Lang providing a $300 million capital injection to Virgin, funds that would be used to expand the airline.
Both companies will speak with Ansett's administrators tomorrow about buying key assets and infrastructure.
Virgin Blue chief executive Brett Godfrey says the proposal could be an alternative or back up to the Fox-Lew bid for Ansett.
"If they want someone else who's serious, I'm not too sure there has been any other serious bid at this stage, I think we can offer that," he said.
But he says even if the Fox-Lew deal proceeds there could be room for Virgin's plans.
"I, frankly from my point of view, can't see them utilising all of the facilities. We'd be even happy to talk to them about expanding our opportunities," he said.
Virgin will also meet with the New Zealand Government tomorrow about operating on trans-Tasman routes.
The deal would see Virgin Blue become an Australian airline.
Speaking on Channel Nine this morning Lang chief executive Chris Corrigan said the deal would involve a significant cash injection to Virgin Blue to enable it to grow quicker than it has in the past.
"We're prepared to inject $300 million into Virgin in order to make it a much larger competitor with Qantas today," he said.
Mr Corrigan says Virgin Blue has a unique and exciting business model.
"We're very attracted to that, we think there is a great opportunity much larger operator in the Australian market," he said.
But he says the airline needs the finance to buy access to terminals and aircraft to increase its presence in the domestic aviation industry.
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Queensland Premier Peter Beattie has welcomed news that Virgin Blue could become an Australian-owned airline.
Mr Beattie says Queensland stands to make considerable gains if the deal goes ahead.
"So we have a win-win everywhere," Mr Beattie said.
"We have an airline based in Queensland which Queenslanders see as their own.
"It's Australian-owned, it gets access to the New Zealand market, competition.
"At a time like this, after September 11, we've needed as much competition amongst airlines as possible."