So I guess short haul out of LHR isn't your core business or even worth continuing then,...
So give BACX your Airbuses and see if they can make it work, or BMI or let Easyjet have a crack. Why not put in a fast rail link to STN and LTN virgin trains can join the party.
Face facts; no matter how tough it is from LHR, passengers want to fly to/from it.
It is not important, and nobody cares, how many duty hours you put in to achieve 900 flying, provided it was the best anybody could achieve in the circumstances (which are the same for all LHR operators).
The most likely scenario is that your short haul product will change, and lets face it you've kindly been trialling not feeding passengers. No doubt there was a down turn in pax figures which by now will have returned to seasonal norms. welcome to the start of the low cost model.
Pilots are not first on the agenda of cost savings but you are on the agenda. Over time you will get shafted in all areas of pay and conditions to make the operation pay, if it doesn't pay it will be cut out because the competition from outside can do it without your overheads.