WHBM I'd say that your probably in the minority with that. Most companies i've worked for go for the cheapest flights, some will have a selection of preferred airlines and others will at least spend a little bit extra for a better routing although have one been offered FLL-EWR-LHR-AMS-CDG-HUY because it was cheaper!
Although, if I was in the minority that get a choice, or a tourist I'd try to go for an airline which offers better service!
To answer the original question, yes there is a decline of what is available with some airlines in European Business Class.
The only down side with BA is that you have an all economy domestic sector, a bit of a come down for someone arriving into LHR from longhaul first, enjoying the excellent lounge and then suddenly finding themselves scrabbling for space amongst the punters and fighting to put their bags in the overhead bins.
When you travel in Asia shorthaul with the likes of Asiana or SQ, its an absolute pleasure.