I'm getting that deja vu feeling - didn't they have a little operation called 'cityflyer'?
Why would they want to do that again?
BA Cityflyer is still very much up and running and operating out of LCY. i think that you could well be thinking of BA Connect which was the part of the operation that BA sold to Flymaybe.
SZ could quite easily be brought under the banner of Cityflyer and then expanded to add capacity, frequencies and routes at LGW, especially if rumours of longhaul expansion by BA at LGW are correct.
CS