V-Flyer

link

It may be speculation however it mentions that 'Both Branson and AirAsia founder Tony Fernandes will be in Australia next month for talks'

I can't see how any form of linkup between the 2 airlines could work at present. Neither airline operates LHR-KUL so how do they feed passengers to each other services without involving other carriers.[?]

I think this speculation has been created because SRB and Virgin have a 20% stake in Air Asia X, the new long haul arm of Air Asia that recently started services to the Gold Cost from KL.

Air Asia currently feeds DJ via the Air Asia X route from KL to the Gold Cost. When V Australia starts there is talk that there will be an Air Asia X codeshare, this is how they will/do feed each other.

There was a rumour that SRB/VS would lend Air Asia X a 340 to start services to STN as the 330 they currently own doesn't have the legs to make it without a stop off. This could well get a VS codeshare I guess.

Well Air Asia X have long held plans for UK flights and as the article suggests they are waiting for the widebody lease market to takeoff. Never mind the A380, I guess 787 delays may also cause them to look at short-term borrowing.