American private equity firm Bain Capital is preparing a second-round proposal to become the owner and operator of Virgin Australia.
Bain said in a statement on Sunday it was "preparing a second-round proposal to become the owner and operator of Virgin Australia ... with a long-term mindset and commitment to a well-funded, successful airline".
It is one of four parties shortlisted by administrators to buy Virgin Australia according to Reuters along with US airline investors Indigo Partners, BGH Capital (backed by superannuation fund Australian Super) and US investment adviser Cyrus Capital Partners.
The Queensland government does not appear to be on the shortlist despite a $200m offer earlier this month.
Bloomberg says Bain's Sydney-based managing director Mike Murphy is leading the team bidding for Virgin Australia "supported" by Jayne Hrdlicka, the former head of Qantas budget airline Jetstar.
"We have the strongest capital base of any of the bidders," Mr Murphy told Bloomberg. "We know aviation isn't going to return to normal any time soon, but Bain Capital is here for the long haul with deep funding to navigate these difficult times."
Deloitte administrators say binding offers for the airline will be required by short-listed candidates by June 12, with a sale expected by the end of June.
Virgin Australia entered voluntary administration in April overwhelmed by $6.5 billion in debt.
KAP Leader and Traeger MP Robbie Katter had supported the Queensland bid.
"The recent Federal Senate Inquiry into the airlines revealed pervasive issues throughout the industry but disappointingly offered no real solutions to the problems within the domestic market that were identified," Mr Katter said.
"We are cautiously supportive of the Palaszczuk Government and in particular, it's good to see that we not just selling assets off but are looking to acquire things that we, as the people of Queensland and Australia, should own."