Virgin has refused to comment on reports that it is looking to form an alliance with Malaysian low-cost airline, Air Asia, and Easyjet.
According to the reports, the three are planning to launch low-cost flights between the UK and Asia.
A spokeswoman for Air Asia said it would be making a “huge announcement” this Friday.
A Virgin spokeswoman said it regularly talks to third parties to explore opportunities to expand its network, but would not comment further.
Easyjet denied the reports, saying they were ‘unsubtantiated gossip”.
Meanwhile, the US government has refused to give Virgin permission to launch a budget airline in the US.
Officials refused to grant Virgin an operating licence because it does not meet requirements under US law, which says airlines must be 75% owned and controlled by US citizens.
Virgin America said it would respond to the US Department of Transportation’s ruling by 10 January