With bmi's adventure into long haul travel not being a complete success (although in fairness, that's partly due to it not being allowed to operate to US from LHR) and now, LHR's third runway likely to be delayed considerably, isn't it about time that MB and Branson finally got this merger thing worked out. Both are high quality carriers with networks that would complement each other; both would benefit from being part of a larger organisation and having the mutual feed.
Both must know it's going to happen sometime, so why not get things under way?