I have no quick answers, but having spent several hour with a friend who is qualified in matters of accounts she thought there were a number of problems the biggest of which was exposure to fuel prices risk in that you have to advertise a price going forward but have no idea how much it's going to cost you to run the service!!
Bmi public accounts do not split between individual companies but one can guess that given that baby is reported to have the lowest cost per seat kilometre in the group and regional have always made money that the real focus is mainline who have had all the bad luck going in terms of it's Market place, but they decided to go after the Arab states.
I don't think there is a quick fix, it's a case of are LH wiling to play and pay for the long game? I think they will LHR is slot restricted and long term that's where the money is, I think baby will evolve and do more group wise and regional will be merged into mainline, it needs a fleet manager, not a whole management structure, things will get far worse in Europe this next few years, I suspect GB is past the bottom and a slow recovery will follow.