If BMI had not been bought (for the slots, the deal would have been cheaper if all the 'baggage' had arrived with the slots) then BMI was on the slide to bankruptcy, no doubt about it.
If IAG had run it as BA 'Express' as everyone seems to call it, then major changes were obviously needed with a massive reduction in cost base to recover the losses incurred each year and make the business profitable. Where do you think those cost savings would be levied? The combination of back office work would never be enough. TUPE wouldn't apply as new contracts could be drawn up with the transfer of AOC. BMI didn't make money under BMI marketing, it would need a fundamental shift to start making money under BA marketing.
BA offered the BACC the option to decide if integration should occur. Be under no doubts that there were some on the IAG board who immediately wanted a BA Express and the reduced cost base. The BACC and BA management convinced them that integrating into the mainline would be better and SH cost parity could be achieved in the short to medium term.
That is where we are at. Integration details next, Shorthaul Profitability targets reached will be the next big 'bite at the T's & C's' cherry for the company. We can only wait and see if the savings pan out. Sad though it is to say but the loss of smaller airlines makes it easier but the continued loss of One World partners makes it more difficult.