(Reuters) -Elliott Investment Management has asked for a special meeting of Southwest Airlines shareholders and nominated eight directors to the U.S. carrier’s board, the activist investor said on Monday.
The hedge fund wants Southwest to change the way it runs its business. It has launched a campaign to oust CEO Bob Jordan and other top executives, blaming them for the airline’s underperformance.
Elliott said it delivered a request to call a special meeting of shareholders on Dec. 10, confirming an earlier Bloomberg report.
Southwest did not immediately respond to a Reuters request for comment.
Southwest Airlines, which has been struggling to remain profitable since the COVID-19 pandemic, has taken a slew of measures to facilitate a turnaround, including adding seats with more leg room, and dropping its marquee open seating system.
Last month, the airline unveiled several initiatives to shore up sagging profits, including partnerships, vacation packages for customers and aircraft sale-leasebacks.
But Elliott has said the airline’s plan was “filled with long-dated promises of better performance,” and called for “credible leadership”.
(Reporting by Utkarsh Shetti in Bengaluru; Editing by Shinjini Ganguli)
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