Proxy fight afoot at Southwest, Journal
The Journal reports that Elliott Investment Management is launching a proxy fight at Southwest Airlines, seeking to overhaul the airline’s board and leadership. The activist investors plans to nominate ten candidates for Southwest's fifteen-person board, including former CEOs of Virgin America and Air Canada. Elliott, which owns approximately 7% or nearly 42 million Southwest shares, has been flagging the airline’s poor performance compared to rivals.
Many industry analysts suspect Southwest’s poor financial performance of late is hangover from its December 2022 meltdown. In the fact of activist pressure, the airline is ending its cattle-call boarding and introducing premium seating, though charging for checked bags is currently a bridge too far.
Some are quite unimpressed with Elliott’s plan for fixing the airline.
More posts like this
