The deal is for IAG to get their hands on Mainline Heathrow Slots.
Add on bits with elderly 737's and regional jets are of no interest. They will be sold off, if a buyer exists, or handed over to someone for a modest sum, or wound down in the most cost effective way.
They have nothing in common with city flyer.
My own view is that as a standalone outfit they may struggle, with 12 aircraft, a mish mash of routes, no identity, and in the current difficult competitive climate.
I hope for the crews sake a way forward can be found.