Now I think that VS is a fairly decent airline and I think SRB is a good businessman, but the trouble that we cannot sustain 2 major full-service carriers, the European aviation market has changed since its was formed in the 80s, BAs main competitors are not from the UK, but in Mainland Europe
To make matters worse, LHR is full and we don't have the capacity to serve as many destinations as they do in FRA/MUC, CDG, MAD and AMS, having 2 British full-service airlines competing for the same routes is not a good use of the limited space at LHR
Remember no nation in Europe (bar Germany and in that case due to the Cold War) has any more than 1 full-service airline (in fact Europe is heading towards 2-3 full-service airlines for the whole region
Hence VS (unless SRB is prepared to keep funding its losses) needs to either:
1: Agree a "peace deal" with BA, this will mean in the long run (when SRB retires or decides to call it a day), BA will buy VS, until then BA would buy a 49% stake (from Singapore Airlines), then BA and VS "agree" not to compete with each other on routes (this will mean VS will pull out of all routes that BA also serve, while launching new routes to destinations not served by either airline) and lastly VS joining OW
2: VS should offer to buy BA from IAG (to pay for the restructuring of IB) with the financial support of *A carriers (like when AC bought CP), BA will for a time become a subsidiary of VS and is gradually integrated into VS, then it will also join VS