I don't know if that has been posted in another form already, but apparently Iberia is unhappy with BA and is "open" to join another alliance, according to a German newspaper article which quotes their strategy person Enrique Dupuy:
http://www.n-tv.de/738958.html

I don't think the specifics had been posted, so thanks for the heads-up. I knew about it, however, and posted a few days about this in general, mentioning the coming (?) "shake-up", but didn't find much of an audience.

I think IB is between a rock and a hard place: too small to survive on its own, too large to easily merge with another airline. The "logical" partner is BA, and that is, IMO, the more likely scenario, so all this reported "unhappiness" with BA is probably posturing, perhaps an indication that merger talks are getting hotter and all parties need to position themselves in the best way they can. That is not to say IB is not capable/willing to merge with Air France, or Lufthansa, but I doubt IB would make such an alliance-shift unless BA got really mean and nasty, and we all know BA is not like that at all.

I'd hate to see IB go (I hate LHR)... and I wonder how large alliances can actually get before members cannibalize each other. i mean how much more european carriers can * absorb, for example? IB might have more routes to south america, but they also fly a lot intra-europe, which * doesn't seem to need.

This is interesting since it's my understanding BA just increased their IB holdings.

It could be that IB expected them to purchase even more than BA decided to do.

I don't think that's the case.

BA purchased additional IB ownership from AA's share. They did this to maintain a seat on the board (or something like that). I'm not sure BA had the opportunity to make a larger purchase (?????)

From memory, AA had less than 1% of IB and BA had 9-10%; so it was close to a token purchase. Spanish companies have been busy buying UK companies (BAA, Scottish Power), so maybe this is the British counter-attack. In any case while IB is trying to go LCC for some of its routes, there is no chance of IB leaving OW as it is trying to build long-haul premium services.

Yes, but only by a few hours The BA board perspective...