Russian state airline Aeroflot is in talks to buy the Sir Richard Branson-controlled low cost carrier, Virgin Express Ireland - on sale since early December.
An Aeroflot spokeswoman said a successful deal with the Shannon firm could open European routes for it under the EU "Open Skies" policy. "Aeroflot is interested in low-cost flights within Europe and on gaining access to destinations there that are closed to us now. We could do that under an Irish flag."
The spokeswoman said company executives visited London last week for talks with Virgin Express Ireland representatives.
The chief executive, Mr Martin Hamrogue, said the company was in discussions with five "serious" contenders. Virgin Express brand, the company's goodwill and the Shannon call centre are for sale. Landing slots at Gatwick are also negotiable as part of any deal which would be worth up to $10 million (€10.7 million).
Within three years Aeroflot intends joining the SkyTeam alliance with Delta Airlines, Air France, Korean Airlines and Aero Mexico.
--(Additional reporting by Reuters)
