Activist Elliott seeks 10 board seats at Southwest Airlines (NYSE:LUV)

Replace 9:05pm: Provides Elliott affirmation.

Activist Elliott Funding Administration is getting ready to start out a proxy battle at Southwest Airways (NYSE:LUV).

The outstanding activist fund plans to appoint 10 director candidates for the airline’s 15-person board, in line with a press release from the Elliott on Tuesday. Elliott is predicted to name for a particular assembly to permit holders to vote on the nominees.

The nominees embrace 4 former airline CEOs and Deputy CEOs and 6 candidates with experience in know-how, hospitality, consumer-focused companies, labor relations and regulatory oversight. The candidates embrace Michael Cawley, the previous deputy CEO, COO and CFO of Ryanair, David Cush, the previous CEO of Virgin America, Robert Milton, the previous CEO of Air Canada, and Gregg Saretsky, the previous CEO of WestJet.

“When nominated, these Candidates would give shareholders a alternative between the Firm’s present Board, which has delivered poor returns for shareholders and has not held administration accountable for Southwest’s unacceptable efficiency, or a brand new Board that brings related experience, recent pondering and accountability,” Elliott mentioned within the assertion.

The information comes as Elliott in June confirmed that it had a $2 billion stake in Southwest (LUV) and the activist pushed for the airline to do a enterprise evaluation and believes the airline inventory can attain $49 a share. Elliott known as for brand spanking new management, together with the corporate’s CEO Bob Jordan and Chairman Gary Kelly.

Elliott nonetheless desires Jordan and Kelly to get replaced, although is now targeted on retooling the board, in line with the WSJ report on Tuesday, which first reported the information of the proxy battle.

Late final month, Elliott Administration mentioned Southwest Airways’ (LUV) “revenue-enhancing initiatives” that might ditch open seating have been “too little, too late,” because the measures come greater than a decade late and after a 50% decline in its share value.