airhumberside,
I agree with you that BMI Baby replacing Lufthansa on the MUC routes would be undesirable for the reasons you state. But Mr Carr DOES mention MUC as being of interest to Baby. Either A) Mr Carr is telling big fat porkies? B) Lufthansa will condone its BMI Baby subsidiary competing with the in-house operation C) Lufthansa will give way to a BMI Baby operation which competes directly with the EZY product, or D) Mr Carr is naming MUC as a decoy (as suggested by Olton Pete) and Lufthansa will continue as before.
Which option do you consider most likely to happen (as opposed to what customers may most wish to see?).