I think with all the ATR / DHC8 offerings Lufthansa ended up cannibalising LHR services which are of course now going over to Germanwings. LCY is very particular I think, it needs very strong banking traffic EDI/ZRH/FRA or high margin point to point BSL/LUX/RTM/EIN or high volume like GLA/AMS.
After all, BACF manage to operate LCY-Stockholm.
Yes and drops it for the summer peak for high yield sun routes, remember BA's LCY-CPH was also tried and dropped (after SAS) which I thought would have done well.
It depends on the deal LCY have given flybe, I think perhaps GIP are unwilling to allow LCY to become a BA fortress and are looking to stir the pot.