Over the years many companies can become complacent with their way of operating. We are all human and this is where at some point we all have done this. Well, it’s time for many, including Southwest airlines, to make those changes.

From fire departments to Airlines there must be changes from a safety point to standards. Even upgrades and equipment upgrades are needed to keep up to date with standards and operating. In order to be successful and competitive you need to adhere and adapt to these changes. No change needed does not bode well for many.

Back in the days when Gary C Kelly was C.E.O. of Southwest Airlines, he made many great achievements and brought the airline to what it was until February 2022. A long tenure of heading the airline into a successful and great airline. Prior to his departure there were some internal differences as to whom was to replace C.E.O, Gary C Kelly.  

For the short-term C.E.O. Bob Jordan has had somewhat of a bumpy ride in leadership from many challenges. October 2022 a mini meltdown had many flights constantly delayed and cancelled. Then a major meltdown in December 2022 for which the airline has struggled since. Other factors including the debacle from Boeing causing a shortage for aircraft.

There are many other airlines affected by challenges and currently cutting back on previously planned routes or expansion. Why the answer to that is due to Boeing. Allegiant Airlines had to make drastic cutbacks this summer as they were supposed to receive many Boeings 737 max 8’s to its Airbus only fleet as of now. United airlines and many others are doing the same cutting back due to a shortage of new deliveries.

On Monday June 10, 2024, Elliot Investment Management purchased $1.9 billon of shares making it a substantial stake holder of the airline. A hedge fund company that is not happy with the way the airline is being run. Now they are trying to push out the C.E.O. Bob Jordan. In all fairness to the airline and the C.E.O. he refuses to resign, and we agree with him. A difference of opinion between the hedge fund company and the airline’s C.E.O. is of no grounds to have him replaced.

Source Fire and Aviation TV June 12, 2024