Flybe's interest is no surprise, but i doubt they'll get it handed on a plate in the way they picked up BACON, although bmi Regional is loss making at present there would be large savings to be made by intergrating Regionals operation with Flybe's in both terms of management cost and aircraft, regional have the wrong aircraft for their route structure (ERJ v D400) Aberdeen based but with all the real levers controlled in the Midlands there must be millions in duplication to saved.
LH would probably have to fund both redundency cost and aircraft lease cost to make it less risky and throw in some LHR routes to boot. (EDI-LHR?)
LH would be left with med haul "stans" and baby and a lot of overheads, baby might go to Jet2 or SMB (if he doesn't get his telly job) or merge with German Wing. The rest would be up to the highest bid Virgin/ba/ Arab carriers