Little Red to battle with big BA

Little Red is the name of Sir Richard Branson's new airline that will compete with British Airways on routes from Heathrow to Manchester, Edinburgh and Aberdeen from the end of this month.

For the first time Virgin is being allowed to compete with BA on domestic UK routes.

BA was forced to hand over some of the slots held by BMI when it bought the loss making airline. Virgin won most of them and the move will spark new competition between the arch rivals.

Virgin Atlantic hopes that Little Red will help feed traffic onto its international services.

The service will use Heathrow Terminal 1,

Sir Richard, from Oxfordshire, says Little Red will "go head-to-head with BA to provide domestic flights that deliver Virgin Atlantic's rock and roll spirit as well as real value for money."