Virgin Atlantic said it has been offered all of the Heathrow short-haul slots available following International Airline Group’s acquisition of BMI. International Airline Group is the parent of British Airways.

The airline said its business case was based on “one airline operating a package of remedy slots so it could mount a credible challenge to British Airways’ short-haul flying to Heathrow.”

Virgin Atlantic is launching U.K. domestic service on March 31, starting with a Manchester-London route. With the addition of more Heathrow slots for domestic service, Virgin Atlantic said it would compete with BA on Scotland flights from Edinburgh and Aberdeen.

Virgin Atlantic will work with a wet lease partner to provide aircraft to operate U.K. domestic flights.

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