1:38PM EST December 10. 2012 - Virgin Atlantic today announced plans to challenge British Airways on its home turf.
Virgin Atlantic will begin a new domestic flying program within the United Kingdom next spring.
The airline will add 24 domestic flights a day to its existing long-haul network. The program is expected to create more than 150 new jobs.
Virgin Atlantic will focus its operations on flights to and from Scotland. Starting in April, the airline will operate six round-trip flights a day between Heathrow and Edinburgh, and three daily round-trip flights between Heathrow and Aberdeen.
The airline will take over nine of the 12 daily pairs of slots at Heathrow airport that British Airways was forced to give up to ensure more competition. Slots give carriers the right to take off and land.
The airline also will use three of its existing Heathrow slots for three daily round-trip flights between Heathrow and Manchester starting March 31.
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Virgin Atlantic is looking to fill the void left when bmi terminated its Glasgow-to-Heathrow service in March 2011, leaving British Airways to dominate the route. A study done by Virgin Atlantic found that the average fare for the route increased by 34% after bmi's departure.
"Throughout our history, Virgin Atlantic has successfully fought British Airways all over the world and has offered passengers a compelling alternative through our renowned product and service," Virgin Atlantic CEO Steve Ridgway said in a written statement. "We will look to replicate that in our short-haul program and challenge the current BA monopoly on these routes, which is causing serious consumer harm."
Virgin Atlantic is teaming with Aer Lingus to run the flights. Aer Lingus will provide the crew and Airbus narrow-body aircraft required. The planes will be fully Virgin branded.
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"We are very pleased to have reached agreement in principle with Virgin Atlantic to provide the aircraft, maintenance and crew with which they will serve their new domestic operations and look forward to now progressing to contract," Stephen Kavanagh, Aer Lingus chief commercial officer, said in a written statement.
Meanwhile, British entrepreneur Richard Branson on Monday played down rumors that he would give up control of Virgin Atlantic if Delta Air Lines buys 49% of the company from Singapore Airlines, Reuters is reporting.
He also said IAG Chief Executive Willie Walsh was wrong in saying that Delta would ditch the Virgin brand if it gains part-ownership.
"Rumors have been spread in the press that I am planning to give up control of Virgin Atlantic and, according to Willie Walsh ... that our brand will soon disappear. This is wishful thinking and totally misguided," Branson said on Monday, according to Reuters.
Walsh told the Daily Telegraph newspaper that Delta was mainly interested in Virgin Atlantic so that it can get slots at Heathrow and that it would not want to keep the Virgin brand.
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