Virgin announces new domestic flights

Where's the fabled capacity squeeze?

Richard Branson's Virgin Atlantic will today unveil plans to break into the short-haul market after winning the bidding for 12 pairs of slots at Heathrow.

Those slots will allow it to start flights to Scotland, with regular daily services from Aberdeen and Edinburgh to London. They will being in March, along with the airline's flights between Heathrow and Manchester.

Ridgway, the company's chief executive, told the Financial Times that:

We have fought hard for the right to fly short haul and take a strong challenge to British Airways within these shores.

Just last month, Richard Branson, chairman of Virgin Group, which controls Virgin Atlantic, launched a public campaign for more slots at Heathrow. But the campaign was predicated on Branson's desire, not for flights to Manchester and Edinburgh, but for flights to Hyderabad, Bangalore and Goa. The Guardian's Gwyn Topham wrote, in October:

Virgin Atlantic is considering a break with its go-it-alone history by joining an airline alliance, Sir Richard Branson said as he launched Virgin's new route to Mumbai with a pledge to expand to three more Indian destinations if he can win slots at Heathrow.

Virgin said its investment in India would pass £300m with its two newest A330 aircraft now operating the Delhi and Mumbai routes. Branson said he was also looking at direct Hyderabad, Bangalore and Goa services from Heathrow, although the chances of winning scarce slots in the immediate future seemed slim.

He said finding slots would be tough but "we're going to start campaigning". It would be "part of our campaign for an extra runway to be built at Heathrow", he added.

The fault here does not really lie with Virgin. The extra slots that they picked up in the auction have to be used on the same routes that BMI, the company which used to fly them, operated. If Virgin want to fly more planes to India, then they have to get different rights which allow them more long-haul trips.

Nevertheless, the news puts a different spin on the standard claim that Britain generally – and London specifically, and Heathrow even more specifically – needs greater airport capacity to fly more planes to emerging markets. The problem doesn't seem to be lack of space in the country's airports, but terrible, centralised and backward-looking allocation of that space.

As Zac Goldsmith wrote for this magazine in September:

We need to encourage a shift from air to rail wherever possible. Every week, there are 78 flights to Brussels, 94 to Manchester, 37 to Newcastle, and 95 to Paris. All of these, and many others, can be reached easily by train. With a better high speed rail network, they will be easier still.

Or, as I wrote the month before:

If we want to have more capacity, one really easy thing to do is stop flying from London to bloody Manchester.

Richard Branson dances in India, because he is Richard Branson and he will do what he wants. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Our new relationship with the EU may be a lot like the old one

For all the tough mood music, Theresa May has left room for concessions.

I'm sad and dismayed, but that's democracy for you.

The Mail is in a cheerier mood. "Freedom!" is their splash. "Dear EU, We're Leaving You" cheers the Express' while "Dear EU, it's time to go" is the Mirror's splash. "Dover & Out!" roars the Sun, who have projected those same words on the white cliffs of, you guessed it, Dover. "May Signs Us Out!" is the Metro's take.

"Brexit begins" is the i's more equivocal splash, "The eyes of history are watching" is the Times' take, while the Guardian opts for "Today Britain steps into the unknown".

The bigger story isn't the letter but its content, which leads the FT: "May signs historic Brexit letter and opens way for compromise". The government is finessing its red line on the competence of the European Court of Justice. (The word in Whitehall is that Theresa May hadn't grasped the importance of the ECJ as an arbitration mechanism after Brexit and for cross-border matters such as flights when she made her conference speech.)  And the PM has done a good job of not ruling out continuing payments to the European Union, her best path to the deal Britain needs.

A lot depends on what happens to the British economy between now and March 2019. The pound is down still further today but whether that's a minor eruption or the start of sustained losses will have significant consequences on how painful Britain's best path to the access we need to the single market - paying over the odds for the parts of membership that the British government wants to keep and swallowing that £50bn divorce bill - is doable or not.

For all the mood music emanating from May, she's quietly done a good job of clearing the obstacles to a deal where Britain controls its own immigration policy, continues to staff Europol and to participate in European-wide research, the bulk of our regulation is set by Brussels de facto if not de jure and we pay, say £250m a week into Brussels.

Our new relationship with the EU may be rather closer to our old one than we currently expect.

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.