By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Gulf PressGulf Press
  • Home
  • Gulf News
    • Saudi Arabia
    • UAE24/7
    • Kuwait
    • Qatar
    • Bahrain
    • Oman
  • World
  • Business
    • Market DataLive
    • Finance
    • Economy
    • Energy
    • Crypto
    • ForexHot
    • Tech
  • Sports
  • Lifestyle
  • Videos
Search
Countries
  • Saudi Arabia
  • UAE
  • Kuwait
  • Qatar
  • Bahrain
  • Oman
More Topics
  • Technology
  • Health
  • Entertainment
  • Crypto
  • Forex
  • Stocks
Site Links
  • Business Hub
  • Trending
  • Weather
  • Customize Interests
  • Bookmarks
  • Newsletter
  • Terms
  • Press Release
  • Advertise
  • Contact
© 2023 Gulf Press. All Rights Reserved.
Reading: Southwest prepares for boardroom fight with Elliott – News
Share
Notification Show More
Latest News
Ferrero’s Social Responsibility Project Kinder Joy of moving Beats Traditional PE Curriculum, Tapping into the Cognitive Functions, Motor Coordination and Life Skills of Students
Lifestyle
UAE Ranks Among Top Rugby Markets on TOD as British & Irish Lions Tour Kicks Off
Sports
Darven: A New Leap in AI-Powered Legal Technology Launching from the UAE to the World
Tech
Beat the Heat This Summer with a Chill Out on Dubai Marina
World
Historic Italian City of Assisi to Host International Exhibition “Jordan: Dawn of Christianity”
World
Aa
Gulf PressGulf Press
Aa
  • Gulf News
  • World
  • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Videos
Search
  • Home
    • Videos
    • Business Hub
    • Trending
  • Gulf
    • Saudi Arabia
    • UAE
    • Kuwait
    • Qatar
    • Bahrain
    • Oman
  • Business
    • Market Data
    • Crypto
    • Economy
    • Energy
    • Finance
    • Forex
    • Tech
  • More News
    • World
    • Lifestyle
    • Entertainment
    • Sports
Have an existing account? Sign In
Follow US
  • Terms
  • Press Release
  • Advertise
  • Contact
© 2023 Gulf Press. All Rights Reserved.
Gulf Press > Business > Southwest prepares for boardroom fight with Elliott – News
Business

Southwest prepares for boardroom fight with Elliott – News

News Room
Last updated: 2024/08/20 at 1:15 AM
News Room
Share
3 Min Read
SHARE

Southwest Airlines is facing a challenge from Elliott Investment Management, an activist investor seeking significant changes to the company’s leadership. CEO Bob Jordan has been rallying support from investors and employees, describing Elliott’s approach as predatory. The hedge fund has criticized Southwest’s underperforming stock and rigid business approach, advocating for a board and executive suite revamp.

Elliott’s objectives include removing Jordan and board chair Gary Kelly, altering the board’s composition, and updating Southwest’s business operations to enhance competitiveness in the modern airline industry. While Southwest has expressed willingness to consider improvements proposed by Elliott, it remains steadfast in retaining its current leadership. The hedge fund demands leadership changes before engaging in meaningful discussions.

Southwest has been grappling with challenges following the pandemic, including increased operating costs and reduced operating margins. The airline’s reliance on Boeing for its fleet has exacerbated its struggles, affecting its ability to compete effectively. Analysts fear that extensive changes could damage Southwest’s brand, which has been instrumental in differentiating the airline from its competitors and fostering a loyal customer base.

Despite Elliott’s pressure, Jordan has affirmed Southwest’s resolve to resist any attempt to force leadership changes. The airline’s strategy includes planned initiatives such as ending open seating practices, offering assigned seating and extra-legroom options, and introducing overnight flights to attract premium travelers and bolster earnings. Southwest aims to unveil detailed plans for these changes in the coming months to drive growth and profitability.

Industry experts speculate that Elliott may struggle to garner sufficient shareholder support to execute its proposed changes at Southwest. Former United CEO Oscar Munoz suggests that Southwest may need to make concessions in terms of board seats while allowing Jordan to continue leading the company. Elliott’s vision for modernizing Southwest and boosting profitability hinges on implementing comprehensive business reviews and operational enhancements.

Calling a shareholder meeting to push for leadership changes could be a risky move for Elliott, as index-fund investors are likely to align with management. Southwest employees have been urged by Jordan not to be swayed by Elliott’s attempts to assert dominance and instill uncertainty. Ultimately, Southwest remains committed to its current leadership and strategic direction, despite the pressure from activist investors.

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
I have read and agree to the terms & conditions
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
News Room August 20, 2024
Share this Article
Facebook Twitter Copy Link Print
Previous Article Gold Price Forecast: XAU/USD remains stable above $2,500, downside risk appears minimal
Next Article Without Infrastructure, There Can Be No Subdivision
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

235.3k Followers Like
69.1k Followers Follow
56.4k Followers Follow
136k Subscribers Subscribe
- Advertisement -
Ad imageAd image

Latest News

Ferrero’s Social Responsibility Project Kinder Joy of moving Beats Traditional PE Curriculum, Tapping into the Cognitive Functions, Motor Coordination and Life Skills of Students
Lifestyle July 14, 2025
UAE Ranks Among Top Rugby Markets on TOD as British & Irish Lions Tour Kicks Off
Sports July 6, 2025
Darven: A New Leap in AI-Powered Legal Technology Launching from the UAE to the World
Tech July 1, 2025
Beat the Heat This Summer with a Chill Out on Dubai Marina
World July 1, 2025

You Might also Like

Tech

Darven: A New Leap in AI-Powered Legal Technology Launching from the UAE to the World

July 1, 2025
Crypto

Bitget Celebrates Bitcoin Pizza Day by Distributing Over 5000 Pizzas in Over 20 Cities Worldwide

May 22, 2025
BusinessCrypto

Bitget Protection Fund Maintains Strength with $561 Million Average Value in April 2025

May 20, 2025
BusinessGulfUAE

Muhammad Umair Saeed: The Billionaire Tech Architect Powering AI, Drones, Blockchain & Cybersecurity from Dubai to the World

May 10, 2025
BusinessCrypto

RWA project FEXSE tokenises $600,000 Jacob & Co. luxury watch on the blockchain

April 14, 2025
Business

NTT DATA Business Solutions Expands Presence in UAE with Stronger Regional Leadership

March 28, 2025

Sustainable Moving Services: How Dubai’s Moving Companies Are Going Green

February 20, 2025
Tech

CNTXT and Oracle Strengthen AI Collaboration to Drive Innovation

February 14, 2025
//

Gulf Press is your one-stop website for the latest news and updates about Arabian Gulf and the world, follow us now to get the news that matters to you.

Quick Link

  • Privacy Policy
  • Terms of ue
  • Advertise
  • Contact

How Topics

  • Gulf News
  • International
  • Business
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our latest news instantly!

I have read and agree to the terms & conditions
Gulf PressGulf Press
Follow US

© 2023 Gulf Press. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

I have read and agree to the terms & conditions
Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?