Virgin Atlantic [VA.UL] may need to merge with a rival or join an airline alliance to survive in the increasingly competitive world of aviation, which has been changed by the advent of cross-border super carriers. After falling behind in European consolidation following Air France's (AIRF.PA) merger with Dutch-based KLM, Lufthansa's (LHAG.DE) recent tie-ups and last year's BA-Iberia (ICAG.L) merger, Virgin needs a partner or else could be left behind. The airline, formed in 1984 by British billionaire Richard Branson, who still owns a 51 percent stake through his Virgin Group, has attracted admiring glances from a number of rivals. Singapore Airlines (SIAL.SI) is looking to sell its 49 percent stake in Virgin, which has hired Deutsche Bank (DBKGn.DE) to conduct a strategic review that could lead to a whole or partial sale or to Virgin joining an airline alliance.
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