Richard Branson's Virgin Group is in talks with an executive of Delta Air Lines about heading up its planned US low-fares unit, the Financial Times reported on Monday without citing its sources.

The executive is Fred Reid, Delta's president and chief operating officer, the newspaper said.

Representatives from Virgin and Delta were not immediately available for comment.

On February 12, Virgin said it was set to choose a chief executive for the US unit from a short-list of three US airline executives.

At the time, a spokeswoman for the company said an announcement was imminent as the group's board agreed in principle at a meeting in London to go ahead with the new no-frills US airline.

"We reckon that the chief executive announcement will be about the 23rd of February, when an individual is prepared to let his name go into the frame," he said.

He said three US airline executives had been shortlisted, including current chief executives.

Virgin is hunting for US investors to buy 51 percent of the new airline and for an airport to use as its headquarters.

Under US law, Virgin Group would be allowed to own up to 49 percent of the venture, which would compete with discount carriers Southwest Airlines and JetBlue Airways.

(Reuters)