Unfortunately, the deal was rejected today. However, Loyola at least is still holding out hope for a deal within the next two weeks. The main sticking point appears to be US domestic access and of course, Heathrow. Personally I'm surprised that they've got as far as they've got on this, but hopefully they will be able to work a deal. Since the major obstacle is something primarily involving the UK, perhaps GB and TB can talk about it while they're in the US.
Perhaps some of the extra slots arising from the move to mixed mode operations will be allocated to new US carriers? I really don't see how much farther the Americans can go; there's no way they will get cabotage approved in an election year. Were it not for the fact that the Americans are anxious to get increased LHR access, I wouldn't be surprised if they told the Europeans to get stuffed.
What is frustrating is that the prospect of increased access only appeals to a small number of major carriers, so progress for the rest is being obstructed for one or two.