**Activist Investor Seeks to Oust Southwest Airlines’ Top Executives**
In a bold move, Elliott Management has announced plans to call a special meeting at Southwest Airlines, potentially as early as next week, in an effort to shake up the company’s leadership. The activist investor is seeking to replace CEO Bob Jordan and Executive Chairman Gary Kelly, who has already committed to stepping down in 2025.
Elliott has put forward a slate of 10 directors, comprising airline executives and former regulators or government officials, to take the reins at Southwest. In a letter to shareholders, Elliott partners John Pike and Bobby Xu expressed their dissatisfaction with the company’s current direction, stating that “competent new leaders” are needed to chart a new course for the airline.
Southwest has responded by reiterating its support for Jordan and criticizing Elliott’s approach as “haphazard” and “detrimental” to shareholders. The airline’s shareholder meeting is typically held in May, but Elliott’s move could lead to a much sooner vote on new directors.
The battle for control comes as Southwest prepares to unveil significant changes to its business model, including assigned seating, premium fares, and red-eye flights. The airline is also bracing for “difficult decisions” to restore profits amidst rising costs and shifting travel patterns.
Elliott’s push for change has sparked concerns among Southwest’s mechanics, who have met with the activist investor. The Aircraft Mechanics Fraternal Association has stated that Elliott’s vision for a turnaround involves replacing Jordan and potentially other top executives.
As the two sides prepare for a potential proxy fight, Southwest will release a routine schedule update on Wednesday, showing its flights through early June. The airline’s leadership will be closely watched in the coming weeks as the drama unfolds.
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