Key Points
- Doug Brooks has been named the new independent chairman of Southwest Airlines’ board, succeeding Rakesh Gangwal.
- The board shakeup follows pressure from activist investor Elliott Investment Management, leading to several new director appointments.
- Southwest is undergoing major business model changes, including ending open boarding and its ‘two bags fly free’ policy, to improve profitability.
Summary
Southwest Airlines has appointed Doug Brooks as its new independent board chairman, replacing Rakesh Gangwal, who will now lead a committee focused on aircraft fleet acquisition. This move is part of an ongoing board shakeup driven by pressure from activist investor Elliott Investment Management, which previously resulted in the addition of five new directors. The leadership changes coincide with Southwest’s transformation of its business model, including the discontinuation of its open boarding and ‘two bags fly free’ policies in an effort to boost profitability.