I have to agree with Racedo in this arguement.
BA can never compete with the LCCs to/from London for short fall point to point, certainly not for leisure orientated market. BA prioritises corporate travel for business community and works closely with travel management firms and corporates. Easyjet is chasing that space where the rich pickings come from, furthermore, Ryanair have orientated themselves in this space too. Apart from business travellers their model is about connecting passengers onto long haul.
Furthermore, let's suppose BA have what people describe as competitive pricing, they are at a huge disadvantage at LHR where taxes particularly on departure are penal...
Take domestic routes to LHR as a guide MAN LHR route, circa 75% of total pax on this route are making a connection at LHR, the metric is in excess of 50% on Scotland routes...
Shareholder value is not found for BA by chasing the low cost airlines down market... it is on business travel and connecting passenger traffic...