The implementation of an organizational transformation may involve the strategic decision to establish a subsidiary. While this maneuver may appear sound from financial or strategic perspectives, it may also give rise to a legitimacy issue, which forms the focal point of this study. In this regard, the present work-in-progress builds upon the case of a European legacy airline, the Leda case, which created a subsidiary, Pollux, as part of its transformation plan. The article delineates the legitimization strategy implemented by Leda, its outcomes, and the failure of Pollux. It also puts forward avenues for potential contributions based on this analysis, emphasizing the critical role of autonomy, strategic coherence, and stakeholder engagement in contested subsidiaries.
