I see someone's finally mentioned the elephant in the room - There's been pretty strong rumours floating around on this from several sources for the last 2-3 months and I was sure I wasn't the only one hearing them!
The suggestion I heard was non-based. I have heard more detail around this but can't really expand on here.
As for flooding the bucket and spade market, well FR at PIK are surely already competing with the GLA sunshine routes anyway - it may boost FR's attractiveness, but it's not "new" competition.
Having said that, I'll only believe all this when I see the FR aircraft on the Tarmac!