Southwest Airlines Announces Major Board Overhaul, and More

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Southwest Airlines Board Refresh: Six Directors to Step Down, Four New Appointments Planned

Southwest Airlines Executive Chairman Gary Kelly announced he will retire in 2025 amid pressure from activist investor Elliott Investment Management to overhaul the company's leadership and strategy.

The airline also revealed that six current directors plan to step down following the November 2024 board meeting.

Key Points

• Kelly, who served as CEO from 2004 to 2022, will retire immediately after Southwest's 2025 annual meeting
• Six of the 15 current directors will voluntarily resign after the November 2024 board meeting, significantly reshaping the board
• Southwest plans to appoint four new independent directors, potentially including some of the ten candidates nominated by Elliott
• The board reiterated its support for current CEO Bob Jordan, who took over the role from Kelly in 2022
• Elliott has been advocating for leadership changes and a comprehensive review of Southwest's business strategy to improve performance and drive shareholder value

What It Means

This announcement signals a major shakeup of Southwest's board and governance in response to pressure from activist investor Elliott.

By refreshing the board with new directors and having long-time chairman Kelly retire, Southwest is taking significant steps to address Elliott's push for changes to improve the airline's performance and competitiveness.

However, the board is standing behind CEO Jordan to continue leading the company through the ongoing transformation.

Other key Aviation and Aerospace Industry updates for today 👇

DOT Investigates Big Four Airlines' Loyalty Programs

US DOT launches investigation into rewards programs of American, Delta, Southwest, and United Airlines.

The probe aims to assess fairness, transparency, and competitiveness, focusing on the potential devaluation of earned rewards, hidden pricing, extra fees, and reduced competition. Airlines must provide detailed information about program changes over the last six years.

DOT seeks to protect consumers' airline rewards and ensure that promised value is delivered.

American Airlines to Add 500 New Maintenance Jobs Across Three Strategic Bases

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The majority of positions are for licensed aviation maintenance technicians (AMTs). Tulsa will receive the largest share with 321 jobs, including 227 AMTs.

This expansion aims to support additional airframe heavy check lines and enhance the airline's maintenance capabilities.

GE Aerospace Acquires Climate Tech Pioneer SATAVIA to Tackle Aviation Emissions

GE Aerospace has acquired Satavia, a UK-based startup specializing in contrail prevention through flight plan optimization.

Founded in 2013, Satavia offers software and carbon credit solutions to reduce aviation's climate impact. Satavia's technology will complement GE's sustainable flight initiatives, including efficient engines and alternative fuel testing.

Ramco Systems Unveils Next-Gen Aviation Software for Aircraft Management

Ramco Systems has launched Aviation Software 6.0, featuring AI-driven insights, advanced automation, and seamless integration for smarter aircraft management.

The new version includes a specialized Engine MRO solution, enhanced inventory optimization, and improved maintenance planning. Designed to address future aviation challenges, it offers predictive maintenance capabilities and real-time analytics.

Ramco will showcase this technology at the Airline & Aerospace MRO & Flight Operations IT Conference in Miami.

Carlyle Aviation to Write Off $40M in SpiceJet Lease Arrears, Boost Stake

Carlyle Aviation will write off $40.2M of SpiceJet's lease arrears and convert $30M into equity, significantly increasing its stake. The deal also includes converting $20M into debentures for SpiceJet's cargo arm.

This debt restructuring aims to bolster SpiceJet's finances and growth plans amid recent challenges. SpiceJet shares jumped 6% on the news.

ITOCHU Corporation Expands Aviation Portfolio with Strategic Killick Aerospace Investment

ITOCHU Corporation has made a strategic investment in Killick Aerospace, a global provider of aftermarket solutions for the aviation industry.

This move marks ITOCHU's entry into the aircraft aftermarket sector, complementing its existing aircraft leasing operations.

The partnership aims to capitalize on the growing demand for Used Serviceable Material (USM) in commercial aircraft maintenance, projected to reach $11 billion by 2032.