If Rod Eddington is going to withdraw from shorthaul because he can't compete with the low cost carriers, what will he do when Stellios buys 767's? Withdraw from longhaul as well?
At least BM have made an attempt at meeting the cheap and cheerfuls head on. These is still a market for full service short/medium range. It's not the market's fault that BA can't make any money at it.
There is room in the market place for both ends of the scale. All BA have to do is work out how to it within their means, and it's not really difficult to see how is it? In an age of Kia Prides and Ladas, people still buy BMWs and Mercs.