Exeter-based Flybe said Virgin was “one of the parties it is in discussions with as part of the formal sale process”.
“Virgin Atlantic has a trading and codeshare relationship with Flybe and confirms that it is reviewing its options in respect of Flybe which range from enhanced commercial arrangements to a possible offer for Flybe,” said Virgin in a statement to the London Stock Exchange.
British Airways’ owner IAG is believed to be another potential bidder for Flybe, according to a report in The Sunday Telegraph.
Flybe’s share price has more than doubled over the past week from 9p to 24p.