Marlow you are correct, The new city flyer is indeed a BA subsidary as is openskies and BAconnect when it existed.
However although they are subsidarys they still seperate airlines with their own AOC. As for the MAN route, I do remember that there was some sort of loophole at the time which resulted in the connect crew operating the flight which came about as a result of some sort of reorganisation which was taking place in man at the time. I wasnt with the company then so perhaps someone here could fill us in on that one!