Elliott Investment Management has increased its equity stake in Southwest Airlines to 9.7pc, nearing the 10pc threshold required to call a special shareholder meeting.
The activist investor aims to replace most of Southwest’s board members, including CEO Bob Jordan and Chairman Gary Kelly, citing the need for operational changes.
Elliott has criticized Southwest for not adopting industry changes such as offering economy fares and charging for checked luggage, and has named former Ryanair executive Michael Cawley as a potential new board member.
Southwest has defended its current leadership team and announced plans for assigned seating and premium seats, but Elliott remains determined to push for leadership changes and engage in dialogue with the carrier.
