The use of LIFO in the situation you are refering to was not illegal under EU age disc law but was actually illegal under current UK employment legislation which now states only positions not people may be made redundant. i.e. you can no longer make a pilot at base A redundant and immediately replace him or her with a pilot from base B who is of higher seniority. I have heard the "we are all un based" arguement but the lawyers can't get around the fact that we are all essentialy "based" even if your contract doesn't say it.
Rightly or wrongly the right legal decisions were made no matter how unfair it may have been to those of higher seniority, to whom I have a great deal of sympathy. I am sure BALPA would have got some kind of legal injunction immediately if this was not the case. I believe they are now looking for individuals to take the risk and bring a case, I'm legally advised won't be won.
Your "Legally Binding" contract is only "Legally Binding" until a cleverer lawyer picks it pieces. Facts of life unfortunately.