Surely this is about the erosion of standards, rather then relativity, StephenLondon?
The new Baxter contract was primarily a contest on price. Unless they buy better than RA (unlikely), can do more with the loaves and fishes than RA (unlikely), or employ cheaper staff (unlikely), the net result will be a reduced/lower quality offer. It is unimaginable that BA would have decided to increase the budget for the lounge operations.
The BAEC comment on Flyertalk says it all really. I do not see this as a Baxter issue; they are very used to mobilising new business.