Politics, Weather, Photography, and the Dog
Friday 1 February 2013

The Cranky Flier wants to know:

Now the latest “news” of the day is that American CEO Tom Horton may end up being the Chairman of the combined entities. There is some good and some bad to this kind of thing. The good is pretty simple to explain. If Horton is willing to settle for a Tilton-esque agreement where he can just sit in a fancy office and collect a huge paycheck for a couple of years, then that finally removes the last real barrier to a merger – the fight being put up by management.

On the other hand, if he insists on a more active role, then it’s a bad idea. There are very few supporters of Horton outside management ranks. Wall Street has been quite clear that Horton’s plans to date are unacceptable. In particular, the plan to grow the hubs by 20 percent is suicidal. As one analyst, Dan McKenzie, puts it, the growth plan “would be toxic for industry pricing and ruinous for shareholders….” The views throughout the financial community appear to echo that sentiment. If Horton has any kind of influence in the merged entity, then the money folks will not be happy. And that hurts the chances of the deal going through.

I'm really hoping for an announcement soon.

Friday 1 February 2013 10:06:15 CST (UTC-06:00)  |  | Aviation#
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David Braverman is a software developer in Chicago, and the creator of Weather Now. Parker is the most adorable dog on the planet, 80% of the time.
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