Belgian talks end for Virgin

SIR Richard Branson's attempts to become a power in the continental European airline industry have stalled after merger talks failed with the reconstituted remains of the former Belgian State-owned airline.

Months of negotiations between Branson's Virgin Express and SN Brussels, the company created after the collapse of the flagship carrier Sabena, ended amid recriminations over the value of the two airlines.

A statement from Brussels-based Virgin Express, 59% controlled by Branson, said: 'After two months of detailed discussions, both companies have decided it is not in their mutual interests to merge, both on financial and cultural grounds.'

Virgin Express managing director Neil Burrows added: 'There were differences on the financial estimations of ourselves and each other.'

Both airlines have been under pressure since rival Ryanair decided last year to enter the Belgian market and make Brussels Charleroi its first Continental hub.

SN Brussels was formed after Sabena failed in the wake of the collapse of its major shareholder Swissair. Virgin Express has retrenched in Brussels after ending its Irish operations and halving its fleet.