Virgin Atlantic has confirmed it will shut down short-haul operation Little Red next year.
Virgin Little Red’s daily services between Heathrow and Manchester will cease at the end of March 2015, while flights between Heathrow and Edinburgh and Aberdeen will continue until September.
Little Red launched in March 2013 following British Airways’ takeover of bmi, when Virgin Atlantic was awarded “remedy slots” on the Edinburgh and Aberdeen routes.
Virgin hoped to build connecting traffic into Heathrow on the domestic routes, the first it has operated. But announcing the closure today, the carrier noted: “Demand has been predominantly from point to point customers rather than connecting traffic.”
It added: “Little Red has unfortunately not been able to make a positive contribution to Virgin Atlantic’s network.”
Virgin Atlantic chief executive Craig Kreeger said: “Little Red came about through an enduring passion at Virgin Atlantic to make a difference for our customers.
“We really wanted it to be a success and everyone involved worked extremely hard and has given it their best efforts.
“It was always a huge challenge on behalf of the consumer, as the totally inadequate number of slots made available by the European Commission did not deliver close to BA’s network position, even when supplemented by our own slots to fly between Heathrow and Manchester.
“The time lag between the takeover of bmi and our entering the market also meant Little Red initially faced an uphill battle to win recognition and convert customers to its services.
“While this meant Little Red ultimately did not deliver the results we hoped, this certainly will not dampen our enthusiasm to try new things in the future.
“We’re very grateful for the support and goodwill shown to Little Red in Scotland and Manchester.
“I would also like to personally thank the Little Red team who have been fantastic ambassadors, providing exceptionally high levels of customer service.
“We look forward to continuing to work with the Little Red cabin crew as we will be offering them roles on our long-haul operation when these services end.”
Virgin Atlantic president Sir Richard Branson said: “When the competition authorities allowed BA to take over British Midland and all its slots, we feared there was little we could do to challenge BA’s huge domestic and European network built through decades of dominance.
“To remedy this, we were offered a meagre package of slots with a number of constraints on how to use them and we decided to lease a few planes on a short-term basis to give it our best shot.
“The odds were stacked against us and sadly we couldn’t attract enough corporate business on these routes.
“The team did their absolute best to make a go of it and I thank them for their amazing efforts.”
Virgin said passengers “can continue to book with Little Red with confidence and frequent fliers will be able to enjoy special loyalty benefits”.
It said: “The airline remains committed to its operations in Manchester and Scotland. Its existing services from Manchester to Orlando, Barbados and Las Vegas will continue, with the addition next summer of a new daily Virgin Atlantic flight between Manchester and Atlanta.
“In Scotland, the popular seasonal service from Glasgow to Orlando will continue with eight extra return flights announced for summer 2015, alongside a new route between Glasgow and Las Vegas.”
The decision on Little Red follows a major review of Virgin Atlantic’s network.