Monarch is yellow herring
It simple really, Lufthansa announce that they are considering a sale or partial sale of the bmi group, which includes mainline,baby, and regional, plus engineering and a share in NATS.
A number of parties express an interest in bits or all of the group (Lufthansa's preferred option) the big boys wouldn't out of choice want either regional or baby, because all they really want is access to LHR, but if push comes to shove they'll take the lot, meanwhile other players express an interest in regional and baby and first out of the block is Woddley & Ross with an offer for regional and that should be complete inside a couple of weeks, likewise there are rumoured to be a couple of interested parties in baby and it's probably that any deal would likely be agreed in principal before November is out.
IAG & Virgin have been in talks to buy the group and IAG tables an offer for bmi which includes everything bar regional which is already sold, IAG will be aware of the baby sale timetable but should that fall apart they'll be left holding the baby so to speak.
So if it works to plan IAG will end up buying bmi which will have shed regional and baby, simples!
Unwinding baby and regional from the bmi group will be less straight forward me thinks
Forget Vueling or Monarch or Jet2, the baby brand will almost certainly continue with it's new owner, after all it is only the brand that is of worth