2 Many Miles,
The application for accruing FF miles to be given to each other members is new to me. According to what I have read and understand, there is no prior regulatory approval needed in the US or UK for AA and/or BA to grant each other miles in each others programs. It is possible that you are referring to some broader partnerships (sharing passenger information, ticket pricing, etc. based on FF programs). To the best of my knowledge mutual non-accrual on trans-Atlantic flts is a voluntary decision of the airlines (AA and BA).
The code share issue is distinct and that has always been subject to regulatory approvals.
My information may be stale and yours more recent. Some of my data comes from talking to analysts closely following these airlines and a few other airlines impacted by this (CO/NW/DL, etc).
[This message has been edited by clouds2cloud (edited 06-27-2001).]