Sir Richard Branson, the airline's founder, was present at the launch of its inaugural domestic service, named Little Red.
He said the move would bring greater choice for consumers, potentially pushing down prices, and offered a cheeky message to his rivals, flashing a pair of pants with "stiff competition" printed on the front.
"Today marks the start of an exciting new chapter in Virgin Atlantic’s history," said Sir Richard. "Our product, service and flair are known throughout the world, and we’re thrilled to be bringing that to domestic flying.
