Yep its a craking bit of BA mgt. Buy a lean and profitable LGW based short-haul airline for top dollar and then merge it with a loss making unit of a very top heavy mgt wise company.
My guess is that either BA placed a "don't start another airline at EGKK that will whup our asses" clause on the deal or BB is biding his time, polishing his Ferrari, working on his golf game and waiting for the right moment. After all the way things are going those ATR/ARJ100 etc etc lease rates are going to be falling if they haven't already. To borrow a line from the the great Insector: "Now is not the time Kato" but it might be soon...