DALLAS- Southwest Airlines (WN) announced Monday (November 4, 2024) the appointment of Rakesh Gangwal, co-founder of India’s largest low-cost carrier IndiGo Airlines (6E), as its new independent board chair.
This leadership shift follows an agreement with activist investor Elliott Investment Management, which had advocated for significant changes in Southwest’s board structure.
Southwest Appoints IndiGo Co-founder Chairman
Under the deal, Southwest agreed to appoint an independent chair after chairman Gary Kelly’s retirement on November 1.
Five new directors, chosen by Elliott, will also join Southwest’s board. This restructuring aims to strengthen the company’s governance and drive performance improvements.
Gangwal highlighted the board’s commitment to enhancing the airline’s financial position, stating, “Our priority as a newly constituted Board is to work closely with Bob Jordan and the management team to return the carrier to superior financial performance.”
Bob Jordan, Southwest’s President, CEO, and Vice Chairman expressed his support for the board’s evolution, affirming, “I look forward to working with our new Board as we execute our plan and deliver for our Shareholders. Our People are at the Heart of Southwest’s Culture and what separates us from the competition.”
Southwest also announced new Board Committee Chair appointments, effective immediately:
- Lisa Atherton as Chair of the Compensation Committee
- Douglas Brooks as Chair of the Audit Committee
- David Hess continuing as Chair of the Safety and Operations Committee
- Chris Reynolds as Chair of the Nominating and Corporate Governance Committee
- Gregg Saretsky as Chair of the Finance Committee
Joined the Board in July
Rakesh Gangwal, appointed as Southwest Airlines’ independent board chair, joined the board in July as the airline was countering pressure from activist investor Elliott Investment Management.
In October 2024, Gangwal invested over $100 million in the company by purchasing 3.6 million shares. Gangwal acquired the shares between September 30 and October 1, paying $29 to $30 per share, according to Securities and Exchange Commission filings.
Gangwal, previously CEO of U.S. Airways and a former executive at United Airlines (UA) and Air France (AF), brings external airline experience—an area Elliott had cited as lacking on Southwest’s board.
Southwest recently reported stronger-than-expected third-quarter earnings as the airline industry adjusts capacity in an oversupplied domestic market.
In September, Southwest presented a profitability strategy that includes premium seating, airline partnerships, red-eye flights, and capacity cuts in underperforming markets.
CEO Bob Jordan revealed in an October 24 call with analysts that Southwest is coordinating with regulators and vendors to certify new premium cabin configurations. The airline plans to launch these premium services by 2026 as part of its broader efforts to enhance competitiveness and meet profitability goals.
Stay tuned with us. Further, follow us on social media for the latest updates.
Join us on Telegram Group for the Latest Aviation Updates. Subsequently, follow us on Google News
