Even as Singapore Airlines reportedly holds talks with other airlines for a possible sell-out of its 49 percent stake in British carrier Virgin Atlantic, Delta Air Lines Inc, the second-largest US airline by operating revenue, is said to be closing in on the stake.

Singapore Airlines had been mulling over the plan to exit from Virgin Atlantic for a variety of reasons that include the British carrier's continued losses since mid-2011, and Singapore Airlines' renewed focus on key markets where its facing stiff competition from budget airlines. Years ago it launched its own budget carrier Scoot to leverage the opportunities in Asian middle-distance routes, and is strengthening its Asian regional carrier SilkAir.

Delta on its part sees a possible stake in Virgin Atlantic as an opportunity to earn takeoff and landing rights at Heathrow Airport which is the hub of corporate travelers in Europe. Heathrow is operating at close to full capacity after Britain's government blocked its expansion in 2010. Virgin won all of the Heathrow takeoff and landing slots that British Airways relinquished following the acquisition of BMI.

As of now, there is no official statement from any of the airlines on any specifics pertaining to the talks. However, reports suggest that Delta is making every effort to bag the stake in Virgin Atlantic. Keeping in view the European Union mandate that all EU carriers must be under European control, the American airliner is also reportedly exploring a tie-up with Air France-KLM which in turn could acquire a part of Richard Branson's 51 percent stake in Virgin Atlantic. This way, Delta will gain majority control of Virgin, win takeoff and landing rights at Heathrow and be compliant with the EU mandate on carrier ownership.

Singapore Airlines has stated that it is open to selling its stake in Virgin, which it had acquired in 1999 for $962 million, but there is no indication of a likely fire-sale. It may be noted that Branson has been weighing the airline's future and two years ago appointed Deutsche Bank to examine offers.