Radio 5 just did an interview with someone from LH (didn't catch their name/position) and although cagey about specifics he was pushing the line that the model they would use was the successful takeover of Swiss. People will know far better than I how welcome that is, but on the face of it Swiss have increased their fleet, and have new aircraft on order via their parent company, which suggests things may work out OK.
As a Manc I'm interested to see what they do at MAN. Whilst the demographics in Germany are different, LH seem happy to have multiple long haul bases in the same country, and will have the benefits of scale that bmi didn't previously. They have also expanded their own MAN operation substantially over the years. Time will tell....