Manx Airlines were owned by Airlines of Britain Holdings (SAS and operated primarily through British Midland Airways). Indeed, Manx was (re)born out of the BM management.
It all went along nicely (Manx if I remember rightly, got additional LHR slots when BM gave up the Belfast / LHR route) until that such time Michael Bishop, Chairman of Airlines of Britain Group (that also encompassed Loganair) decided (or was told) to float the Manx / British Regional Airlines part of the group. British Regional was formed from Manx Airlines Europe (a part of Manx Airlines which was all to do with being able to trade out of the UK as a Manx company).
Manx / BRAL was subsequently sold into the private sector (and no doubt, many people in the Airlines of Britain Group made a killing). I think the Manx / BRAL staff got about £1000 each in shares, if I remember correctly.
Unfortunately the Manx / BRAL share price collapsed and BA moved in with a price of about £60,000,000 and bought the company. That was believed to be the commercial value of the LHR slots and thus they acquired the company for free! It was widely believed at the time that had BA not bought Manx, the company would have collapsed anyway, partly as a result of BA's reluctance to renew the BA franchise that Manx operated successfully for several years.
BA then commenced their hatchet job over a number of years… the LHR slots went and BA systematically raped the former Manx Airlines (BA CitiExpress / BA Connect) until such time that Little Willie decided to pull the plug on BA Regional operations. Flybe stepped in after BA made them a generous offer that they apparently couldn’t refuse.
So most likely, the money was made by floating the Manx / BRAL group but the unintended consequence was that the company effectively collapsed and BA stepped in. The rest is history, or at least that is my recollection of events.
Not sure what the argument is about the Manx Government owning the LHR slots - I seem to remember Manx Airlines going to the Manx Government to ask for 'assistance' in protecting what was after all, the 'cash cow' and the Government of the time in their finite wisdom declined to help insisting that there was an open skies policy in the Isle of Man.
