No-one from Virgin Atlantic was available yesterday to comment on a Sunday Times report claiming that UK domestic arm Virgin Little Red is set to close.
The airline, which serves Manchester, Edinburgh and Aberdeen from Heathrow, has struggled to win large numbers of passengers, with reports earlier this year that some services were only one-third full.
Senior aviation industry sources said it was set to be closed as part of a review led by Virgin Atlantic chief executive Craig Kreeger, according to the newspaper.
Virgin Atlantic last week announced plans to scrap flights to Tokyo, Mumbai, Vancouver and Cape Town and increase transatlantic services following its tie-up with Delta Air Lines.
Little Red was launched by Virgin founder Sir Richard Branson in March last year in an attempt to prevent British Airways dominating domestic routes from Heathrow.
The carrier is operated by Aer Lingus on Virgin’s behalf under a wet lease arrangement.
The launch was a response to the takeover of the regional carrier BMI by BA’s owner International Airlines Group which Virgin had opposed and was aimed at feeding passengers onto the Virgin Atlantic long-haul network.
Asked about the regional airline’s future, Virgin Atlantic told the newspaper: “We look at Little Red through the same lens as the rest of the business – it must deliver on performance, potential or strategic contribution. Little Red is still in its growth phase, so it is too early to comment on these criteria.”
One source the Sunday Times said was closely involved with the Virgin review of routes said Little Red’s fortunes showed that Heathrow’s importance as a hub was waning fast.
“Transfer traffic is much less important at Heathrow than it was. More people are flying direct out of regional airports on long-haul services, or to foreign hubs such as Amsterdam to connect with other flights.”