I assume that the plan to float FlyBe which was put on hold while BACon was absorbed, is back on hold until the stock market improves. Until the float BA owns 15% of FlyBe. BA will drop unprofitable routes from time to time, and FlyBe will no doubt have the opportunity to take the route on.
Are the LGW domestic routes unprofitable? Who knows? But until Waterside decrees they are, then surely they will continue to be operated by BA.