Branson told reporters at the Russia Forum investment conference that he is discussing the partnership with "two or three" Russian airlines and he expected an announcement on partnership in about three months.
He did not give further details. The proposed airline would follow the business model Virgin has used in Britain, the United States and Australia of providing a high service level at relatively low fares.
"If we can create the best quality airline in Russia, there will be a market for the best quality airline," Branson said. "We can also be competitive on fares."
Branson said Russia's growing prosperity has created wide opportunities for airlines. "Every British person flies 10 times more than a Russian," he said.
