Singapore Airlines has indicated that it is holding discussions with interested companies for selling its 49 percent stake in Virgin Atlantic.

Singapore Airlines was using the partnership to offer trans-Atlantic routes amid stiff competition from British Airways in the UK. Singapore Air Chief Executive Officer Goh Choon Phong had also turned Virgin Atlantic's focus more towards Asia. The airline had ordered smaller aircrafts in its attempt to compete better with Asia's low cost airlines.

Singapore Airlines had acquired the stake about 13 years ago and some are now describing the investment as one of the company's biggest mistakes. Meanwhile, Singapore Air has announced that it will stop operating direct flights from Singapore to Newark and Los Angeles in the US. Aviation passengers are increasing looking for cheap flights with budget carriers and thus the company has also decided to cut down on the in-flight amenities.

According to some people closer to the matter, Atlanta-based Delta, which is the second largest airline in the US, might be looking buy a part of or the entire stake holding of Singapore Airlines in Virgin Atlantic. Delta's partner Air-France KLM might also pick up a stake in the airline. The acquisition by Delta will allow the company to expand its presence in Europe and strengthen its position on the trans-Atlantic route.