docav8tor

https://strongersouthwest.com/wp-con...t_06102024.pdf

Aero1900

An activist investor will probably turn you guys into Spirit or Frontier. Cut cost to the core and destroy the product and culture

9thAmendment

Very well could. But their initial presentation made it seem like they are aiming to compete with the legacies’ premium offerings.

No matter what happens with the operational changes there will be significant cost cutting.

WHACKMASTER

As opposed to the current management who are destroying the product and culture……

rickair7777

Elliot has a history of tuning companies up, not breaking them into pieces for a fire sale.

But they have forced the sale of some companies, although that's much easier said than done with airlines, especially big ones.

So I think they view SWA as a fix-er up-er project.

5tools

I think its interesting we have people here complaining that Gary turned the company over to Wall Street, and now folks want a activist investor like Elliot to come in here and dictate change. Elliot was involved in TWA, MCI and WorldCom restructurings and look how those turned out. I'd be careful what you wish for.

NuGuy

Typically these guys don't like labor. They'll come in and sell a plan, along the lines of "If you just give us flexibility for 24-36 months (IE concessions), we'll transform this airline into a world class operation, and your participation will be remembered with {nebulous & indistinct promises of some back end reward never clearly defined}."

Some who yurn for the "good ole days" might bite on that.

REF 5

Interesting that AW is the only senior executive that has worked at another airline. All the rest are in house according to Elliot. They only compare SWA to the big three. Almost all metrics are put up against them. Sounds like they want them lean into that direction.

They seem to believe though that the network, dominate market share, great balance sheet, loyality programs, etc can turn this around. My opinion is we all know whats behind door#1. We have no idea whats going to behind door#2.

Top 10 institutional investors own 65% of the company. That's a big nut to crack that have loyality to GK and the board. As of now we are talking about green bars/exto in the fall. Next CEO may just furlough to cut costs. I think one of the problems will be finding a CEO. Not many executives come to airlines. Especially the smart ones. It's usually retread's. Does Elliot wants a turn around guy(Richard Anderson) or someone to take it long term? Either way, if you think BJ's salary is large, wait till they find his replacement.

RckyMtHigh

Look at Spirit's and Frontier's performance. The ULCC model is barely hanging on. I would expect an activist investor to want a turn in the other direction toward a legacy model.

REF 5

Herb turned SWA over to Wallstreet. Remember, it was Herb that picked Gary Kelly to run this place. I do agree though when you read the presentation, it's all about returning shareholder value. They throw in the profit sharing to employees as lip stick on the pig.