Sydney route on horizon for Virgin

VIRGIN Atlantic is close to landing the one big intercontinental route that does not appear on its flight schedules, with talks opening next month to push forward its plans to fly from London to Sydney.

Sir Richard Branson's international airline has filed papers with the Hong Kong government to enable it to use the former British colony as a stopover for a new 'kangaroo route' to Australia.

The plan, under which Branson believes Virgin will be flying to Sydney within 18 months - comes as arch rival British Airways is in a stand-off with Australian regulators about the continuation of its code-share alliance with Qantas.

Under this, the two carriers control about 60% of the lucrative London- Sydney business travel market.