Is bmi at LHR effectively just BMED, LH group feed and one or two domestics? Might it not be more profitable just to sell the slots and just put the cash in the bank?
Re bmibaby in the East Midlands - yes, there is some residual brand loyalty to the bmi group but I suspect it's not much more than anyone but FR-type loyalty. The bmi regional flight EMA-BRU is also probably just there for Toyota at Derby / Brussels.
There must be a fundamental difficulty working for an airline business when you know there is very little opportunity for any meaningful growth...