Sir Richard Branson's airline has become the second largest in Australia

The stake in the low cost airline, now the second largest airline in Australia after Air New Zealand's Aussie subsidiary Ansett's recent collapse, may be sold next year, he said.

Virgin Blue had already signalled that a 49% stake in the carrier was up for grabs, but it has not previously expressed a willingness to give up control.

"From my point of view and from the company's point of view that would be a good thing and by that I mean Richard is open to that idea. He doesn't have to have control," Mr Godfrey told the Nine Network's Business Sunday programme.

However, Mr Godfrey insisted that the sale of a 49% stake remained its favoured option.

New Zealand

The sale would raise cash for other Virgin brands, including the airline Virgin Atlantic and the company's US mobile phone venture.

In addition, a sale of a majority stake would convert the carrier's status from foreign owned to Australian owned.

That would enable it to serve the lucrative trans-Tasman route between Australia and New Zealand.