Elliott Investment Management Supports Southwest Airlines Governance Changes

Elliott Investment Management has released a statement regarding Southwest Airlines' governance changes. Rakesh Gangwal is stepping down as Chair but will remain on the Board. Elliott thanks Gangwal for his leadership and is confident in Southwest's trajectory, looking forward to continuing constructive engagement. Elliott is a finance expert with a $72.7 billion asset management portfolio as of December 31, 2024.

Southwest Airlines Co. has appointed Doug Brooks as its new independent chairman, effective August 1, 2025. Brooks replaces Rakesh Gangwal, who will continue to serve on the board but will now lead the newly formed Fleet Oversight Committee [3]. This move comes amidst ongoing board shakeups and business model transformations aimed at boosting profitability.

The appointment of Brooks follows a series of governance changes initiated by activist investor Elliott Investment Management. In October 2024, Southwest had already appointed five new directors to its board as part of its settlement with Elliott [1]. The changes are part of a broader effort to overhaul Southwest's business model, including the discontinuation of its open boarding and "two bags fly free" policies [1].

Elliott Investment Management, a prominent finance expert with a $72.7 billion asset management portfolio as of December 31, 2024, has expressed gratitude for Gangwal's leadership during this transformational period. The firm remains confident in Southwest's trajectory and is committed to maintaining constructive engagement as the airline pursues its long-term value creation strategy [4].

Doug Brooks, who has served as a director of Southwest since 2010, previously held executive positions at Brinker International, including as Chairman, President, and CEO. His extensive experience in the restaurant industry and his track record of creating shareholder value make him well-prepared to lead Southwest through its ongoing transformation [3].

Southwest Airlines' transformation is well underway, with a focus on delivering superior financial performance and creating value for all stakeholders. The appointment of Brooks and the formation of the Fleet Oversight Committee are key steps in this journey, ensuring that Southwest's strategic priorities are effectively overseen [3].

References:
[1] https://skift.com/2025/07/31/southwest-airlines-appoints-new-independent-chairman-in-latest-board-shakeup/
[2] https://www.marketwatch.com/story/southwest-airlines-names-new-chair-forms-fleet-oversight-panel-f9d525b1
[3] https://www.prnewswire.com/news-releases/southwest-airlines-announces-governance-changes-302519094.html
[4] https://www.stocktitan.net/news/LUV/elliott-statement-on-southwest-governance-ydwi1uwxoijs.html