The idea of British Airways' restructuring its shorthaul services is simply coming from an announcement by Mr. Eddington that said whilst British Airways' shorthaul operation is breaking even, and is doing much better than it was when he arrived, despite the difficult trading conditions right now for the airlines. However, he said that breaking even was simply not good enough.
One of the rumoured announcements was that BA was going to become a no-frills airline from LGW on shorthaul flights, whilst the airline's regional carrier CitiExpress was to begin operating flight with "no-frills attributes".
These are all rumours which I believe are going to be phased in over the winter whatever the announcement is. I think it's more likely that the airline is going to turnaround its Euro Traveller cabin & to try and get a better use out of their aircraft, slots and ground equipment & crews. For example, it might be that in Euro Traveller free meals & drinks will no longer be available like on the "Tu Menu" from Iberia or Aer Lingus. I doubt they would pull Club Europe, but who knows?
With regards to Ted, this has been an excellent move from United, because they've reacted well to this market. They have introduced Bob (buy on board) on most of their domestic and trans-border flights, and on flights where United was facing competition from LCCs or where there was mostly leisure pax, the airline has restructured in such a way that they are gaining more pax through "a fresh new airline" like Ted, whilst not alienating traditional UA pax.