I have been away for a couple of weeks and am just catching up with this thread again. I was very surprised to see that no mention has been made of the deal between BAA and various airlines about the use of LHR terminals after T5 is opened. Apparently T1 is to be used exclusively by Star Alliance airlines. It is to be redeveloped including the construction of more stands. It will be the only terminal used by Star airlines at LHR. There will be no room there for Virgin, who will be at either T4 or T3. If ther ehad been serious discussions between bmi and VS any such announcement about Star at T1 would have had to be delayed. I think this puts the last heavy nail into the coffin of speculation about any merger between VS and bmi. It will not happen.
Rumour has it from Crawley that there is dismay in a certain headquarters building about the trading position and about some lost opportunities which will have set back the company.