flybe ARE suffering right now - this is true, but with Loganair flying under a 'franchise' agreement - similar to the current BA deal, where branding is displayed throughout but with Loganair titles by the front door etc...
Full UK-wide coverage for both airlines with subsidies from the Scottish Parliament for the Highlands and Islands, as well as any new routes being cosidered.
An outright purchase may well not be on the cards but a tie-up certainly would make some sense.
One thing IS certain, Willie Wonka wants nothing to do with LC and the sooner BA shakes them off the better (His view as stated in November last year when news of the regions being 'under review' initially broke not mine)