I have fond memories of BMA flying as a passenger in their Viscount's between LHR and LBA during the early / mid 1980's; later flying in the DC9-30 aircraft to MME. I also flew in the 737's between LHR and EDI; great in flight service and they certainly challenged BA on the domestic and European routes. BMA were the first to introduce hot meals and BA had to follow suit and replace the coffee and biscuits with meals re-branding as 'Super Shuttle'.
Their standards were very high and it was a credit to the staff and management that the company has lasted all these years.
I guess Virgin will now take up the challenge and attempt to compete with BA on these domestic routes; the interline traffic must make it worth it?