In a recent string of messages, A-Net members discussed how American Airlines will soon discontinue it's non-stop, daily Newark-London Heathrow flight. The discussion also speculated on cities (Boston, JFK, etc.) that might receive an additional American Airlines LHR frequency as a result.

My questions:

1. Must American Airlines gain gov't approval -- either US or UK -- to transfer the Newark-LHR frequencies? If so, is gov't approval in these cases typically quick or somewhat complicated, and is local gov't (e.g., Newark City Counsel) input a part of the process?
2. Under the current bilateral agreement (Bermuda II?), is AA restricted in any way re: choosing which US city will be the recipient of it's new LHR flight? For example, is it solely at AA's discretion whether to add an additional frequency to its JFK-LHR schedule, or to initiate a completely new LHR route from any city on its route map? (e.g., San Jose(CA)-LHR, if not already served non-stop by AA.)
3. Can AA take the daily Newark frequency and divide it between two or more US cities? For example, add 4 new weekly LHR non-stops from Boston AND use the balance to initiate 3 weekly San Diego-LHR non-stops?

Thanks.