easyJet is often more expensive than BA at LGW, and easyJet has the benefit of marginal in-flight revenues from catering that BA doesn't.
BA's problem at LGW is largely one of revenue not cost. And competing against easyJet isn't simply an issue of price. easyJet pax I talk to, on the whole, like the easyJet service and experience. And easyJet's marketing and branding has really sharpened up over the past year. The "Where are you going?" campaign was much more inviting and aspirational than easyJet's historical marketing.