MaxAOB...good post. And probably just what BA are thinking. However, if it's not managed properly then all that will happen is that GB Airways will get sucked down the same plughole as CFE, Brymon, etc.
The management of shorthaul at LGW has GOT to be taken away from BA. They simply do not know how to do it. CFE Management could have done it and made a profit. GB Management can do it and make a profit. BUT ONLY IF ALLOWED TO MANAGE WITHOUT EXCESSIVE INTERFERENCE.
If such a move is MIS-managed by BA (how dare I suggest such a thing?) then GB will simply end up saddled with the costs, overheads, history, and cock-ups of the past and are doomed to fail. Just look at the handling costs in the North Terminal, before you even start on the management issues.
If, as you suggest, they are to present a serious threat to the ryanair/easyjet competition then they've got to start from scratch....not try and mould what they've already got.