Shun Tak Holdings said on Friday Virgin Blue has withdrawn from discussions regarding a joint venture with the company and Air Macau to provide low cost carrier services in the former Portuguese enclave of Macau.

Macau casino mogul Stanley Ho's property and entertainment group said the company and Air Macau are still actively continuing discussions on the proposed venture.

It did not say why Virgin Blue pulled out of the talks.

The company also said it remains of the view that the proposed venture will complement its passenger transportation businesses and enhance visitor traffic to Macau as a whole.

A further announcement will be made if and when the terms are formalized, it said. It gave no further details.

Last November, Macau signed a liberalized air services agreement with China, opening the door for discount Australian carrier Virgin Blue to proceed with plans for a new China-focused airline in the territory.

The new air services pact more than doubled the number of passenger flights from mainland Chinese cities to Macau to more than 539 passenger flights per week.

It also allows a second airline to operate from Macau to mainland cities for the first time, with the number of cities accessible by air from Macau increasing to 37 from 31.

Virgin Blue is 45 percent owned by Australian transport group Patrick Corporation and 26 percent by British entrepreneur Richard Branson's Virgin Group.