There's more to it, management wants that because they only need one guys approval.
I'm writing a case study right now but its way too long for APC. Think 5+ year plan, and how much of how many airlines and other business Delta will own in 5-10 years. We are an industry leader, the next step in growing the enterprise and shareholder value is to grow the business vertically and horizontally. Industrializing the company lowers the risk in any one sector of the business. If we then generate only say, 25-30% of revenue we are effectively marginalized. We may be in a position where a MC thinks its a good trade to give up international branding to keep us in the game. 1.E.9. is a seed planted for the future. This is also a good argument for protecting scope. The more we do on both ends of the scope the more operations we capture.
We could be the next Ford Motor company. The name says Ford but have you seen all they own and do? In other countries with their brands and others? And where is there manufacturing? Why do they have ownership in steel companies? etc.
Delta Air Lines - More Than Just An Airline - Delta Air Lines, Inc. (NYSE
AL) | Seeking Alpha