The facts:
BA shorthaul is pretty much farcked up.
The LCCs have nabbed most of the bread, the private jet operators a lot of the jam. London Airways is still trying to operate a European network at a premium product level which very few people want. With massive debts and inefficiently overpaid managers and crews they are loosing money.
Longhaul London Airways is making money and in 2 years time will be making an obscene amount of money. Just like they have done in every economic upturn.
The answer - split to BOAC and BEA. Except BEA would be shagged without those Golden Heathrow slots. So. Give a lot of it to the Franchises who make a decent go of it without the debt burden and overpay/idle managers.
When the time comes for them to renew the contract hold a gun to their head and force them to take what would be BEA crews - although at the time it looks like making the franchises agreeing to let BA pilots in. Crews join, BA then announces it wishes to divest itself of its European 'division' and splits it off to a wholly owned subsidiary. In a few years time said subsidiary is sold off to a 3rd party.
Hey presto BA got rid of shorthaul and now makes tons of money doing the only thing it knows how to.