The mixed flying worked in terms of crew retention. The problem was the seasonality of the Gatwick short haul operation. Correct staffing during the summer season but more than required
during the winter season.
I doubt short haul made losses for decades. There were some good years and some bad years. As we know BA changed the story according to what they wanted to do at Gatwick.
I personally do not think the 737 max is intended for BA Euroflyer. I think we shall see A321 and A320 arrive from Heathrow as more A321 or A320neos are delivered to Heathrow. Always fine about being wrong.
From my contacts the AOC for Euroflyer should be fully in place later this year.
From November the airline will only be using its own metal from then on. To be honest setting up the 'new' base within 6 months was always going to be a tall order.
From the cabin crew of view I agree something needs to be done. The overall package needs to be more attractive.