I am not suprised at all by this... it seems that when BA wants to pull a domestic route they just over-price it until they can say it doesn't pay...
They did exactly the same with PLH/NQY (

)... when Ryanair came onto the NQY route they were at first competitive, I could always get a flight home to Plymouth for the weekend for £79/£89/£99 (I would never pay the rip-off £320 for 'C')... then they started the same scam we're now seeing on the shuttle routes of emptying the low buckets up to a week before departure, meaning you could never get a decent fare at short-ish notice.
They pulled the route and now Air Southwest (PLH based startup) are operating it with BA's old planes, into BA's old slots, even checkin at LGW is done by BA... very reasonable fares even at short-ish notice, and they are making money. Enough money to expand into 3 new routes this year...
Its crazy.
[This message has been edited by dnw (edited Feb 27, 2004).]