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Southwest Airlines adds industry veteran Gangwal to board amid pressure from Elliott
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Southwest Airlines adds industry veteran Gangwal to board amid pressure from Elliott
Jul 8, 2024 5:46 AM

July 8 (Reuters) - Southwest Airlines ( LUV ) has

appointed aviation industry veteran Rakesh Gangwal to its board

of directors, it said on Monday, as increasing pressure from

activist investor Elliott pushes the U.S. budget carrier to take

defensive measures.

Gangwal - who co-founded InterGlobe Aviation, the

operator of India's largest airline IndiGo - has also served on

the boards of US Airways Group, CarMax ( KMX ) and Office Depot,

among others.

"Rakesh's expertise in travel technology will be valuable as

we continue to make investments that support our operations and

strategic initiatives," said Gary Kelly, executive chairman of

Southwest's ( LUV ) board.

Elliott, known for pushing for a change to boost shareholder

returns, had called for a reconstitution of Southwest's ( LUV ) board

with "new, truly independent" directors possessing expertise in

airlines, customer experience and technology.

The activist investor had also called for a leadership

change citing Southwest's ( LUV ) disappointing financial results.

Last week, Southwest ( LUV ) adopted a "poison pill" strategy, used

by corporate boards to thwart hostile takeover bids, to deter

Elliott Investment Management from raising its stake in the

carrier.

Elliott currently owns an 11% stake in the company.

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