On wonders how it took so long. Some years ago AB had some very strange looking policies, from the outside. They dubbed a large number of flights via PMI or Berlin. I could buy an AB local ticket from ABC to TFS but I had to stop off in PMI, when I could buy a local ticket with local competition on a direct flight for less money. Guess which was there choice. Unless you were in PMI or Berlin there were not many interesting direct flights within EU; or so it seemed.
Then, at one time, before the long-haul crazy adventure, they were operating (I think) 4 different short-haul types when the competition were all operating single types and obviously lower cost. How could they compete and survive with that business model. Did they not then buy LTU long-haul routes and venture over the horizon before they had consolidated their short-haul base? And they were trying to offer a premium short-haul service for LoCo prices and a high cost base.
It did not seem a recipe for success many years ago. And I don't think pilot salaries had anything to do with the demise. It seemed a daft business plan years ago at a time when the strong contenders were consolidating their own cost bases & business model.