No, it is not about the Sesame Street character of the same name. Floyd wrote it in response to the death-by-airplane of label mate Otis Redding. Specifically: en route to Redding's funeral, Floyd was waiting to get on board a plane that was having mechanical problems. Shee-it!
I really dig the mysterious "big horn sound" on this one, which paradoxically sounds to me like it was created with very few horns.