Southwest Airlines CEO Dismisses Activist Investor’s Criticism as ‘Inane’
Southwest Airlines CEO Bob Jordan responded to sharp criticism from activist investor Elliott Investment Management, calling their remarks “inane.” During an investor day presentation, Jordan defended the airline’s strategic plan, which aims to improve business performance. Southwest’s initiatives include reducing headcount by 2,000, slowly increasing seat capacity to boost fares, introducing assigned seating, and launching a $2.5 billion share buyback program.
Elliott, which holds an 11% stake in Southwest, expressed dissatisfaction with the airline’s actions, calling the plans “rushed and haphazard.” The hedge fund has been pushing for new leadership and a comprehensive business review, arguing that current management has not adequately addressed the airline’s challenges.
Elliott also announced plans to call a special shareholder meeting to address its concerns, stating that Southwest’s management and board are obstructing necessary leadership changes. Despite these criticisms, Southwest’s leadership maintains confidence in their strategy to guide the airline through its current difficulties.
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