05:22 AM EDT, 09/18/2024 (MT Newswires) -- Southwest Airlines Company's ( LUV ) mechanics union, Aircraft Mechanics Fraternal Association, was told by activist investor Elliott Investment Management in a Sept. 12 meeting that it still wants to replace Chief Executive Officer Robert Jordan, Reuters reported Tuesday, citing a union memo.

The hedge fund, which owns 10% of Southwest's ( LUV ) common shares, also wants Executive Chairman Gary Kelly to leave sooner than his planned departure date.

The meeting took place shortly after the Dallas-based airline said six directors will step down in November and Kelly will retire next year but remained committed to Jordan.

The airline also recently said it will appoint four new independent directors which could potentially include up to three candidates proposed by Elliott, according to the report.

The hedge fund now owns enough Southwest ( LUV ) stock to call a special meeting and take the next steps to shake up the board and management, Reuters said, adding that Elliott blames the two executives for the airline's struggles and has been holding union meetings to gain support.

The mechanics union also said that Elliott has engaged consulting firm Gephardt Group to investigate Southwest's ( LUV ) recent approach to labor relations.

Southwest ( LUV ) did not immediately respond to MT Newswires' request for comment on the matter.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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