While I would love to see a VS BMI merger to challenge BA I don't think it will happen.
VS is up to it's neck just trying to survive at the moment and I am not sure SQ is very happy with them; SRB will ensure VS survives I am sure but I don't think even he can raise the cash to take over and support BMI to profitability at present; of course he's not to be underestimated so I might be wrong.
So it looks like BA then!