REF 5

https://www.cnbc.com/2024/08/14/elli...chterm=elliott

Interesting article about Elliott and their campaign of activism.

"For a $69.7 billion hedge fund — even by the standards it has set — Elliott Management has operated at a scale and frequency this summer that’s given even the most seasoned activism defense advisors pause."

"Rather, in early July, it laid out a detailed presentation to Starbucks’ board that focused on a strategy overhaul, with a particular focus on Starbucks’ lagging China business and board changes, said the people familiar with the matter.

And unlike some of its other campaigns — Southwest and Texas Instruments, for example — it kept those conversations private."

I wonder if SWA BOD told Elliott to pound sand and then Elliott decided to go public. Either way, Elliott's success speaks for itself. Sometimes if the BOD feel's threatened like this, especially if it has a small majority of ownwership, they would try to take it private. Kinda like what Midwest Airlines did when Airtran tried to buy them. TPG took Midwest private. I don't think SWA can do that. A private firm would have to pay up a lot to make SWA shareholders happy. Who has the vision to take SWA forward? Specifically, who would be the CEO? What is the vision? I would think at some point Elliott will announce what they believe should be BJ's replacement. Meanwhile the FAA is giving SWA flight ops a colonoscopy on how they operate. Interesting times.

e6bpilot

It is nauseating to pilots, but just like deck parties and costume contests, the proles eat that crap up and the psychic wage is real in Dallas.
There is still a good amount of what I would consider "culture" on the line, it is just pilots (and some FAs) taking care of each other. That's the kind of culture I can wrap my brain around, not the rah rah BS that spews from the mouths of our temporarily employed leaders.

e6bpilot

Interesting times indeed. I think we are going to see more change in the next 18 months than we have seen in a very very long time.

Hobbit64

FIFY, IMHO. there's a huge difference between those words

5tools

All you Elliot cheeleaders are going to be in for a rude awakening of how Wall Street really operates if Elliot is successful. So we have too much capacity, their answer will be to first cancel orders, and eliminate more routes. If that does not get the stock price were they want it, then they will sell airplanes and equipment, which means now we have too many pilots, FA, and mechanics. If that does not work, they will just start gutting SWA as we know it, as they want a return on their investment anyway they can get it. They have no interest in running airline. This is not Starbucks.

Interesting reading,does it sound familiar? Not exactly SWAPA's sales job they are trying to make about Elliot. I guess CM thinks they will make him CEO one day and he will not have to acutally fly an airplane.

https://cwa-union.org/sites/default/...-factsheet.pdf

khergan

Sounds like good news for you! You can sling cokes and snacks at a Chuck E Cheese or somewhere else that fits your skillset. You should thank Elliott for their kindness.

5tools

Special on Tucker Carlson in 2020, when Elliot purchased a large share of Cabela's. Not a pretty picture. They forced the sell of Cabela's which resulted in layoffs, hardships, etc. Elliot went in purchased Cabela's stock for like $36/share and in about year and half sold it for $93/share and left a wake of devastation in its wake. Elliot does not care about unions, people, and airlines.

https://www.youtube.com/watch?v=UatnTSwEUoc&t=7s

5tools

After Elliot demanded changes at AT&T 20,000 employees have lost their jobs. Communications Workers of America Union warned about this and it happened. And here we have SWAPA over there dancing with the devil. What a suprise, begining to think SWAPA is about screw us all.

AT&T CEO’s Multimillion Compensation Increased While Thousands Of Employees Were Terminated (forbes.com)

REF 5

BJ has already said they are working with Boeing to reshuffle the order book. Code words for "we'll move those orders to a later date". Capacity has already been reduced for the second half of the year. Canceling is outright giving up the slots which I don't think SWA has ever done. SWA isn't the only airline that is doing this. Every other carrier has and will reduce capacity for the 3rd and 4th quarter. Some airlines already deferred some orders. Although SWA has somewhat of a capacity problem, it's real problem is on the revenue side of the equation. Bottom line is before Elliott decided to take a stake in SWA, BJ had already slowed and then stopped growth anyway. ASM growth will be in the low single digits for a long time. Unlike most other carriers, SWA will not fund growth through debt. If cap ex can't be paid through cash flow, it will use what assets it currently has to increase ASM's. Most other airlines have had healthy cash flows to fund Cap ex, SWA not so much. Remember, SWA has about 3 Billion in debt maturites coming due in 2025. I think part of that is owned by Elliott, which can convert it to shares.

Mozam

Stop quoting the angry FA. She/it is ruining this board .