Virgin scouting for China, India air assets

Virgin Group said it was exploring the potential for operating low-cost services in China and India. The carrier said the company's new business development team was looking at possible investments but still far from closing any deals. Investment would not necessarily involve either Virgin or Virgin Atlantic brands and simply involve investment in a third carrier. Indian discount carrier Air Deccan said Virgin had approached it about a possible partnership but abandoned talks when anticipated relaxation of Indian ownership rules failed to materialize. India allows institutions and individuals to own up to 40% of carriers in the country, but not foreign airlines. Virgin had hoped liberalization would allow airlines to hold up to 49% of Indian carriers.