Elliott Pushes for Changes at Southwest Airlines

Elliott Investment Management, holding an 11% stake in Southwest Airlines, has requested a special shareholder meeting on December 10 to push for significant changes, including replacing eight board members and potentially ousting CEO Bob Jordan. This marks Elliott's first U.S. proxy fight since 2017, aiming to address what it describes as Southwest's underperformance and lack of effective leadership. The investment firm has nominated a new slate of directors with aviation and management experience, including former executives from Ryanair, Virgin America, and Air Canada. Southwest has previously responded to Elliott's pressures by implementing some strategic changes, such as a share buyback and reducing board size, but maintains support for Jordan. Elliott's campaign reflects broader dissatisfaction with the airline's post-pandemic recovery efforts and leadership, urging shareholders to embrace new oversight. The airline has yet to publicly comment on the matter.