Three Chinese airlines are reportedly in talks to buy out Virgin Australia.

The carriers could be looking to scoop up the cash-strapped Australian company according to a Courier-Mail report.

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It’s understood China Southern Airlines, East Airlines and Air China are all considering buying Virgin Australia Group, but no formal offer has been lodged.

The reports come as the Queensland Government moves to partially fund a potential bailout, offering $200 million to back the airline, providing the headquarters remain in the state.

The federal government has already injected $165 million into Virgin and Qantas to keep key domestic routes running during the pandemic.

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However, Scott Morrison has so far refused to rescue Virgin from the administration, saying any assistance will be at a sector level.