Virgin's Branson may launch Brazil airline-report

SAO PAULO, June 24 (Reuters) - British billionaire Richard Branson is in talks with Brazilian partners to start an airline in Latin America's largest country, the Agencia Estado news service said on Tuesday.

The airline would be a kind of "Virgin Brazil" and would start out with domestic flights, though it may later expand with international destinations, Branson said on the outskirts of the Global Humanitarian Forum in Geneva, according to Agencia Estado.

"Brazil is a very dynamic market and we haven't paid enough attention to it in the past," said Branson, who controls Virgin Atlantic Airways [VA.UL].

"We know there is a lot of room to grow given the country's size and the need to develop the air transportation system for Brazil's own growth."

Branson said the talks are ongoing and he expects an announcement soon, Agencia Estado said.

Brazil's civil aviation laws cap foreign ownership of domestic airlines at 20 percent. (Reporting by Elzio Barreto; editing by Carol Bishopric)