British entrepreneur Richard Branson's Belgian no-frills airline Virgin Express has completed merger talks with rival SN Brussels Airlines to form the main operator at Brussels Airport.

"We are very pleased to have successfully completed the common ownership of Virgin Express and SN Brussels Airlines," Virgin Express Chairman David Hoare said in a statement on Tuesday.

Full-service carrier SN Brussels -- born out of the 2001 collapse of Belgium's national airline Sabena -- agreed last year with Virgin Express to combine their operations in a joint holding company, 70.1 percent controlled by the private investors in SN Brussels.

Both airlines will continue to operate separately, however, and the operational details still have to be worked out.

Under the terms of the deal agreed in October, Branson's Virgin group can opt to pull out of loss-making Virgin Express, which posted a EUR7.3 million (USD$9.5 million) net loss in 2004, since Virgin Express can sell its 29.9 percent stake in the new holding company to the owners of SN for EUR54 million (USD$70 million).

Alternatively, SN Airholding -- the private investors behind SN -- can opt to buy out Virgin Express for EUR75 million (USD$97.2 million).

Virgin Express Holding, the listed company controlling the airline -- 88.6 percent owned by Branson's Virgin group -- also said it plans to buy out the Virgin Express minority shareholders at 1 euro per share, before delisting the stock.