Not quite, MAN-LCY was axed because the West Coast Mainline improvements were complete. VLM's traffic on LCY-MAN/LPL collapsed overnight and both routes were closed soon afterwards. VLM ended up in bed with CityJet but the LCY glory days were behind them as BA got serious, built up BA CityFlyer from the rash mistakes of BACON (boom boom!) and went onto dominate the local market.
Back on topic, Virgin have resumed MAN ops as of yesterday (Sat) with B787-9 G-VOWS off to Bridgetown as VS077.