The Open Skies operation was a completely half-baked idea to begin with, particularly as it did not operate under the full BA brand. Most of the concept was around using the (respected) BA brand product to obtain business traffic ex USA and Europe and then they go and launch it under a different title with a different product. It also then suffered from the usual BA problem of a hundred-weight of managers with no idea of how to control costs. My view is that it was doomed to failure from the outset and it is no surprise that its finances now closely resemble a black hole. How long before shareholders start to really question this? They would be far better getting the 757s back into the UK (which they now can't due to the labour relations issues) and using Open Skies for thin long-haul routes.
The LCY operation, on the other hand, is more likely to work. Pure BA - and frankly if BA doesn't do it, there is a racing certainty that someone else will and that would take the benefit of cannibalising BA's Heathrow traffic. Air France has long experience of A318/319LR operations....