Are we likely to see a bankrupt BA? or will they consolidate and live to fight another day?
No; they will survive. Along with Ryanair, easyJet and flyBE. Who knows about many others.
757s sold, protect slots at Heathrow (much of the value of the business), take advantage of bmi dying a slow death, and help kill of the unviable US carriers. 2 years is a while until the cash runs out...and at least this is the worst stage of the recession.