Privatisation is the only sane solution.
Declare insolvency to allow IAG or similar to step in without all of the dead wood and politically appointed incompetants.
The A340s are not the problem, just a smokescreen to cover up the overstaffing and the enormous wage bill.
Just let Willie Walsh sort it out in the same way that he sorted Iberia.
Sort out the abysmal cabin service and the passengers should come back.