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Australian discount carrier Virgin Blue has said that it is still in talks to set up a similar carrier in the Chinese Special Administrative Region of Macau.

The former Portuguese colony is now a major gambling destination for tourists in the region, which is something airlines are keen to take advantage of. Talks have been held with Hong Kong casino owner Stanley Ho's Shun Tak Holdings and the national carrier Air Macau.

A spokesperson for Virgin Blue said that although discussions have taken place and some common ground has been found nothing has been signed and won't be for some time, reports The Scotsman.

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