A320,

That seems to me to be a very astute assessment of the situation.

In looking for a solution. We should also consider the corporate governance problem:

In theory, shareholders elect directors, who in turn appoint officers. Meaning that officers report upwards to both levels. In reality, though, the presence of large institutional shareholders, and the officers' control of proxies, mean that in reality, the officers are in control of most of the shares--so that they dictate who the directors are, and to a certain extent control them.

Since Milton has been successful at generating shareholder value, it may be extremely difficult to get either the directors, or less directly the large institutional shareholders to rein him in.
There needs to be a realization among those people that his approach may be damaging to the airline in the long term.