Southwest Appoints Rakesh Gangwal to Board

Southwest Airlines has appointed industry veteran Rakesh Gangwal, co-founder of India's largest carrier IndiGo and former CEO of US Airways, to its board of directors. This move is seen as an attempt to counter activist investor Elliott Management, which holds an 11% stake and has been pushing for leadership changes, citing poor financial performance and a loss of shareholder trust. Elliott has criticized the appointment as a strategy to entrench current management, further exacerbated by Southwest's adoption of a 'poison pill' plan to limit Elliott's influence. The poison pill prevents any entity from acquiring more than a 12.5% stake without board approval. Southwest's board, under fire since a significant operational meltdown during the 2022 holiday season, hopes Gangwal's extensive experience will bolster its defense against Elliott's demands for new, independent directors with airline and technology expertise.