Going back to original question of whether it is an alliance. From a practical perspective it is nothing more than a cross marketing agreement with rights to elite travelers to access clubs. I'm AA Plat. Booked coach flight through AA on Iberia from JFK to Madrid on 6/25. Delay in take off, and pilot deciding to circle Madrid a few times on a beautiful sunny day lead to missing 10 minute boarding cutoff for connection to Rome. By two %^*#ing minutes.

Sentenced to last flight out that evening even though there were three earlier flights. Call to AA Plat desk was fruitless as they said once the ticket is in control of the other airline (Iberia) you are at their mercy. Unfortunately, an equipment mechanical problem pushed the second departure back another six hours and we ended up on a de facto red eye by landing in Rome at 5am.

Had to eat my Trenitalia ticket and one night hotel. Although this was irrelevant to the original question, the end result is the alliance does not benefit the traveler unless you are elite and can be in the elite lounge.