There were rumours that Jet2 were in discussion with investors and Lufthansa, to offload bmibaby and integrate it into Jet2's business model.
I guess todays announcement rules that out, Jet2 do not need to take a huge risk anymore, simply open a new base at the airports where bmibaby is cutting back on, like we have already seen major expansion at MAN and a new base at EMA. Watch this space with regard to CWL and BHX! Lufthansa obviously have a long term stratergy for what is going to happen to bmi/bmibaby etc, but clearly it is not interested in increasing their presence in the UK based LCC market. It's a huge shame as bmibaby are one of my favourite airlines, and I think an enlarged Jet2/bmi baby would have been a huge success, and could have realistically competed with Ryanair/easyJet.