Southwest Airlines announced that former CEO and current Chairman Gary Kelly will step down. This move fulfills part of the leadership change demanded by Elliott Management. Several other board members will also leave, with plans to expand the board again, suggesting Elliott will gain representation.
Kelly, often criticized recently as a "bean counter," has been a lifelong advocate for Southwest's brand and operational philosophy. However, Elliott Management objected to this insularity and appears intent on remaking Southwest in the image of JetBlue and American Airlines.
With increased influence from Elliott and Kelly's departure, rumors are circulating in Dallas about potential changes at Southwest. These changes may be revealed during the airline’s investor day this month. Two major alterations being discussed include ending free checked bags and introducing basic economy fares.