Virgin Atlantic is to set up a business class-only carrier initially serving the US from Europe. The move will put it head to head with Eos, Silverjet and Maxjet.It will also take on Air France-KLM and Lufthansa, with the launch of services from continental Europe.

Negotiations have already started with the world’s four main airplane makers - Airbus, Boeing Co., Bombardier and Embraer over a possible aircraft order worth up to $700 million, according to the Dow Jones news wire.

The premium carrier would likely offer services between Paris, Amsterdam, Zurich, Milan and Frankfurt to New York and other U.S. cities.

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