Southwest Airlines Director Invests Over $100 Million

NEW YORK (Reuters) – Southwest Airlines (NYSE:LUV) Director Rakesh Gangwal, appointed amid pressure from an activist investor, purchased over $100 million in stock and stated that further leadership changes would be ‘counterproductive.’

Gangwal, co-founder of the low-cost Indian carrier InterGlobe Aviation (IndiGo), acquired 3.6 million Southwest shares on September 30 and October 1, according to Securities and Exchange Commission filings, paying between $29 and $30 a share.

He made these purchases as soon as the trading window for directors and insiders reopened.

Southwest appointed Gangwal to its board in July as Elliott Investment Management increased pressure, demanding leadership and strategy revisions to enhance financial performance. The airline announced a board overhaul last month, including the retirement of executive chairman Gary Kelly and six other directors from its 15-member board.

Elliott has persistently demanded more changes in leadership, including the removal of CEO Bob Jordan and plans to request a special shareholder meeting to pursue these changes.

On Wednesday, Gangwal told Reuters that additional upheaval in the executive suite and boardroom might harm shareholders. ‘I believe changing the board structure and top leadership beyond what has been already announced would be counterproductive and not in the best interest of shareholders.’