The airline was intended as a feeder for Virgin’s transatlantic business but the flights
were less than half full, making services unsustainable
Sir
Richard Branson suffered his second blow in a month yesterday as the
Virgin Atlantic founder announced the closure of the loss-making Little
Red domestic airline after just 18 months.
Little Red began
flights from Heathrow to Manchester, Aberdeen and Edinburgh in March
2013, using its own prized Heathrow take-off and landing slots as well
as those which competition authorities forced its bitter rival, British
Airways owner IAG, to relinquish following its purchase of domestic
carrier bmi in 2011.
The airline was intended as a feeder for
Virgin’s transatlantic business but the flights were less than half
full, making services unsustainable. It comes a month after Virgin
Atlantic cut routes to Mumbai, Tokyo, Vancouver and Cape Town in favor
of new transatlantic business in an attempt to restore profitability
this year.
Little Red’s services to Manchester will end in March
with final flights to Edinburgh and Aberdeen in September next year. Sir
Richard hit out at the European Commission for giving the fledgling
airline little chance with its small allocation of airport slots. He
said: “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 just couldn’t attract enough corporate business
on these routes.”
Virgin leased the pilots and aircraft from Aer
Lingus to deliver the Little Red service. A Virgin Atlantic spokeswoman
said around 100 Little Red cabin crew would be offered jobs on its
long-haul routes. Virgin used four slots to provide Little Red’s
Manchester service, but those used to serve Edinburgh and Aberdeen will
revert to British Airways if no other airline applies to the Commission
to use them.
The closures comes days after IAG boss Willie Walsh
launched a fresh attack on Little Red: “I’ve said from the very start
that Little Red will be ‘big red’. I don’t know why they did it. I’m
delighted to have been proven correct.”
In a reference to US
airline Delta’s 49 percent stake in Virgin Atlantic, an IAG spokesman
added: “Little Red’s planes are flying about one third full so it is no
surprise its masters in Atlanta have decided to axe it.”
- Source: http://www.independent.co.uk
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