Elliott Investment Management has called for a special shareholder meeting at Southwest Airlines on December 10, 2024, to discuss proposals, including the removal of eight board members.
Southwest Airlines responded robustly to Elliott’s request, asserting that the demand to replace board members is “without cause” and could disrupt the airline’s ongoing business transformation during a peak travel period.
Despite recent leadership changes at Southwest, including the retirement of executive chairman Gary C. Kelly, Elliott remains dissatisfied and is also advocating for the removal of CEO Bob Jordan, facing resistance from other shareholders.
Elliott, which holds an 11pc stake in Southwest valued at approximately $1.9 bn, is known for its activist investment strategies and has received backing from Artisan Partners to help secure shareholder support for its proposals. Ex Ryanair executive Michael Cawley is among the directors of Southwest.
A written statement from Southwest stated: “Elliott’s special meeting request is unnecessary and inappropriate considering the extreme nature of Elliott’s demands. Unfortunately, Elliott remains entrenched in demanding control of the Board making it impossible to find a constructive resolution. For nearly four months, Elliott has failed to offer any substantive feedback on Southwest’s strategic plan Southwest recently announced several leadership changes, including the retirement of executive chairman Gary C. Kelly and six additional directors. The airline has also rolled out product changes such as assigned seating, extra-legroom seats, new airline partnerships, and modifications to the boarding process. However, Elliott remains unsatisfied and is also pushing for the removal of CEO Bob Jordan, despite opposition from other shareholders.
