This is good news for Air Wales and should be a good move for Bmi. It would work out more profitable for Bmi to use a smaller a/c if they cannot sustain a 737 but I doubt the fares will be as low as they make out due to the fact it is much harder to sell lower prices on a 48 seater and make it profitable.
Will Air Wales be painting the ATR into BMI colours? and will they use the baby callsign?
I can see both airlines making a profit from this well done Bmi and Air wales.