given that baby is reported to have the lowest cost per seat kilometre in the group and regional have always made money
baby's aircraft are clapped out and
need significant amounts of money spent on them to be able to operate after 2015. Given the huge loses do you really think DLH will invest in fleet renewal?
Regional has not made any profit in the last two financial years, but has performed by far the best of the group.
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,
There is a quick fix - but you wont like it. BMI has survived on the notional value of the LHR slots for years. The quick fix is close the whole thing down and sell the slots. DLH would get some of the money they have thrown at bmi in the last few years, and the hemorraging of cash stops immediately.
A more likely scenario is that regional is sold off, baby is closed down, some slots at Heathrow are sold and significant downsizing of mainline. Think about things from a business perspective rather than the glory days of Derby Airways.