Here's a scenario for you to consider. BA is unlikely to be allowed to acquire BMI on competition grounds. So BA says right, we are going to pull out of domestic routes, we need the slots for Europe & long haul. The regions are in uproar. BA replies that it is very happy to interline and codeshare with BMI on Aberdeen, Edinburgh, Manchester, etc. Most BMI staff are still employed, BA no longer have regional crew bases and outsource handling so no big issues for its staff. As they are pulling off domestic routes there is no competition they might as well acquire BMI so that it stays in line.
The uproar from the regions might offset competition issues.
Of course there are issues. BA will need the extra slots gradually over a long period time - but it can always "babysit" some by using small aircraft on secondary European. The biggest danger would be for BA to pull off domestic without acquiring BMI which at some stage gets into bed with Branson.
Perhaps as a sweetener VS & other operators be given a block of seats on BMI domestic flights which would encourage competition (how does that fit into UK & EU competition policy)?
Thoughts anyone?