Couple of things;
1) This was in the Mail, which is not exactly renowned for it's accuracy when reporting aviation related matters.
2) How can Flybe be in talks with Lufthansa over an airline which it will not actually own until mid January '09 at the earliest?
Regional I can see, Baby I can't.
I read the article in the link, when i got to the £150m bit i fell off my chair laughing, who in their right mind would pay £150m for any of bmi/regional/baby other than the slots of LHR?
Perhaps because it's a business with over a billion pound trunover?