BMI is reportedly reviewing its UK domestic network from Heathrow following price hikes by the airport’s operator BAA.
Flights to Manchester are to be reduced from six for four a day while the carrier is considering closing its loss-making Glasgow route.
Domestic route closures would hand British Airways a monopoly and will dismay politicians and businesses in Scotland and Northern Ireland, the Telegraph reported.
Lufthansa-owned BMI aims to use take off and landing slots created by domestic cutbacks for more lucrative international routes.
A spokesman said: “We never comment on rumours.”
But a source told the newspaper: “The domestic network has been under review. Higher charges are killing domestic air travel at Heathrow.”