Really? BA has made a lot of enhancements in every cabin. New catering and soft product, wifi on 90% of its aircraft by the end of the year, a new business seat that competes with the best in the sky...what do you mean not a healthy price/quality relationship?
BA and its partners have fewer slots as a percentage of the total at LHR than KLM do at AMS, LH does at FRA or AF does at CDG. That's a poor argument, BA faces more competition across the majority of its network than any other out of its hub. There are only a dozen or so longhaul routes where BA has no non-stop competitor but there are aggressive one-stop competitors on those routes. There'll be no reigning supreme.
As for BA changing its game, it's out-competed Virgin at Gatwick, are you aware of the Gatwick changes? The BA cost base is incredibly competitive; it's getting new, modern aircraft, a new incredibly competitive J seat and still faces among the stiffest competition of any airline. Virgin liquidating would have no material impacg on UK aviation competitiveness. There is an argument to be had about the job losses and economic cost of those. European aviation still needs to undergo more consolidation like the US went through 10 years or so ago.
So-called enhancements, perhaps some more material in the future, but the J seat introduction will be slow. Y is dismal, on EU flights probably the worst in the industry now, long-haul no longer what it used to be. Maybe subjective, but working for an international organisation, I am envious of colleagues who get to fly out of other hubs on respectable carriers. Read the fora here to see what the world thinks of BA J class. And yes, the fares on LHR routes are incomparably higher than any other major hub in Europe and there are structural factors at play that no whitewashing (oh but demand!) can camouflage. And BA's expansion at LHR is part of that problem.
Your second para: yes, but that's not entirely objective in so far that the market sector that brings in bigger bucks favours BA for several reasons. There will never be equal level playing field of course, but BA has some rather distinct advantages, mostly related to the slot constraint at LHR, that allow it to drive a very different operation than its European and most of its long-haul competitors.
I beg to differ re the third para too. LGW routes and crews have been particularly unpleasant from customer point of view, but never mind that. Yes, VS going down will severally impact competitiveness on the NATL routes, particularly NY but others too, numbers tell that story very well. Consolidation is not working well for consumers, and luckily the low-cost model is different/stronger here than in the US and that is rooted in several structural factors as well, and will hopefully defend us against over-consolidation. I understand this the mantra and many drink the cool-aid, but there are strong political economy arguments against what has been happening. And for intellectual honesty's stake, it's hard to sustain an argument about competitiveness when you end on a consolidation note.
Agree to disagree -- your focus is on guarding the firm. Mine on the consumer.