Having overseen the oftentimes acrimonious merger of Canadian Airlines, witnessed the depression in the airline passenger market in the wake of September 11, 2001, been negatively affected by the war in Iraq and the SARS threat in the spring of 2003, Robert Milton, CEO of Air Canada, had only recently reached 11th hour settlements with Air Canada's major unions. It was these agreements that had saved Air Canada from liquidation. Public critics pointed fingers directly at Milton and his actions to date as a major reason why employees and union leaders alike were so reluctant to commit to the economic health and viability of the airline. Victor Li, owner of Trinity Time Investments Ltd., was poised to buy a controlling stake in Air Canada. The proposal deal would give him veto power over a list of 23 different matters, including hiring the CEO. Should Li be confident in Milton and his management team to lead Air Canada through its next phase? Or would Air Canada be best served if Milton were let go after having brought the airline to this point?
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