The path of this thread wanders almost anywhere but where it should.
Heathrow slots.
That's the only worthwhile part of bmi.
The current climate and the poor management and organisation of bmi are responsible for the present losses (and the losses of many years previous). All it needs is some competent management.
Buy the Heathrow concern, just for the slots, ditch the entire appaling management and huge army of paper shufflers and start again. Offer pilots new contracts from scratch. (It'd be a complete seniority reshuffle, lads, take it or leave it). Keep the aircraft fleet as is for now and trim and downsize where necessary. When the economy picks up, you're sat on a goldmine.
As for baby and regional, who needs to buy either? What are they, that can't be built up, in better form, from nothing (though its too late for baby anyway - bmi missed the boat years before baby was formed, whilst Easyjet and Ryanair saw a real business opportunity and now control the market, except in the odd grubby corner where baby hides).
No idea what Lufthansa's problem is, except that they signed a deal that looked great many years ago. They failed to take account of leaving bmi management in charge in the meantime and now its the shambles it was always inevitably going to end up as.