Southwest Airways CEO Bob Jordan stated Wednesday he is not going to resign because the air service faces pressure from activist investor Elliott Investment Management..
“We wish to perceive what their concepts are, they might have nice concepts,” Jordan informed reporters in Washington after an occasion. “On the finish of the day, we’re going to deal with Elliott like every other investor. We’ll sit down and hearken to them…. Southwest is a superb firm. We’ve got an important plan and can execute.”
Elliott on Monday known as for management and board adjustments at Southwest after reporting a stake value about $1.9 billion within the service, saying the corporate wants contemporary views to compete within the fashionable airline business.
“I’ve no plans to resign,” Jordan stated, a 36-year veteran of Southwest.
Jordan additionally stated Southwest, which had anticipated to get 80 airplanes from Boeing this year, now solely expects to obtain 20 and doesn’t anticipate to start utilizing the smaller MAX 7 — which remains to be awaiting certification — till 2026.
“We help Boeing doing the work to get higher… As a result of a greater Boeing is nice for us for many years. We’d like Boeing to be very stable,” Jordan stated. “I’m not proud of the delays.”
Jordan will meet with the pinnacle of the Federal Aviation Administration in a while Wednesday to debate Boeing.
He visited Boeing provider Spirit AeroSystems on Friday the place a variety of high quality points have arisen and plans to go to Boeing once more in two weeks.
Jordan stated the Elliott plan “is pretty mild” on proposed adjustments.
He added that he had heard Elliott might suggest bag charges however Southwest stated its buyer knowledge exhibits that almost 50% of its clients decide the airline due to its no-bag fee policy.
“You’ve bought to be very knowledgeable earlier than you begin proposing adjustments that have an effect on the enterprise mannequin of Southwest Airways,” Jordan stated. “Elliott shouldn’t be directing the corporate.”
Jordan informed reporters the airline wouldn’t stagnate, reiterating Southwest is contemplating adjustments to its open seating coverage and doubtlessly including premium seating or further leg room seats.
“If buyer choice tells us we have to evolve, we are going to evolve. You can’t be cussed about change,” Jordan stated.
“On the identical time we’re going to stay to our values and our values say, ‘We deal with folks proper. We’ve got the most effective insurance policies, we’ve got the most effective folks, we function properly’ – exterior of that all the pieces might be on the desk.”
Southwest plans to unveil a “very broad plan” at an investor day in September, Jordan stated.
