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.