Its an investment which could really work out well for LS if they did it properly. The opportunities are endless, for the charter market. Keeping the airlines as separate entities but merging back of house operations to cut cost could work. If you were to merge it all into LS operations, then plenty of new destinations are available to them, but they loose a strong and trusted brand.
Personally I would love to see them kept as separate entities with a few crossovers. i.e. BOH operations merged etc, along with ground handling done by LS own staff.