The barbarians have come knocking at the gates for SWA

[arkflyr]

Looks like the lackluster performance at SWA has attracted the attention of the vultures.

Elliott calls for leadership change at Southwest Airlines after building $1.9 billion stake

Southwest's shares rose more than 7% in Wall Street morning trade. The activist investment management firm said Southwest's "poor execution" and its leadership's "stubborn unwillingness" to evolve the company's strategy have led to deeply disappointing results for shareholders, employees and...

finance.yahoo.com

I agree there has to be a change, and leadership’s glacial response to the market shifting around them has been discouraging to watch. I’ll also say that I’m way more comfortable with the devil I know than the one I don’t.

Time will tell I guess.

 

[ZapBrannigan]

That escalated quickly...

 

[arkflyr]

Here is their letter to the Board of Directors this morning. There isn't anything in there that I disagree with on the surface but after living though a private equity takeover of my first employer (AirNet), which was under radically different circumstances still leaves me gun-shy about any of these types.

Elliott Sends Letter and Presentation to the Board of Southwest Airlines

/PRNewswire/ -- Elliott Investment Management L.P. ("Elliott"), which manages funds that together have an investment of approximately $1.9 billion in Southwest...

www.prnewswire.com

Looks like I'm going to have to bite the commuting bullet and upgrade now, and I hate commuting.

 

[MikeD]

There’s this guy….name is Lorenzo I think….anyhow, he loves the airline biz. Might be a good fit to take the helm of the company there.

 

[Murdoughnut]

My three colleagues who previously worked at WN were talking about this on our call this morning. Not a lot they disagreed with in the letter.

 

[derg]

There’s this guy….name is Lorenzo I think….anyhow, he loves the airline biz. Might be a good fit to take the helm of the company there.

MICHAEL!!!

 

[DE727UPS]

There’s this guy….name is Lorenzo I think….anyhow, he loves the airline biz. Might be a good fit to take the helm of the company there.

There’s this guy….name is Lorenzo I think….anyhow, he loves the airline biz. Might be a good fit to take the helm of the company there.

He would be 84 now and I thought he was banned from being involved in airline ownership years ago.

 

[MikeD]

Ll

He would be 84 now and I thought he was banned from being involved in airline ownership years ago.

I believe that is correct. Fallout from the Eastern debacle.

You ruined my perfectly good quip. My quip was working. And you ruined it.

 

[Roger Roger]

Here is their letter to the Board of Directors this morning. There isn't anything in there that I disagree with on the surface but after living though a private equity takeover of my first employer (AirNet), which was under radically different circumstances still leaves me gun-shy about any of these types.

Elliott Sends Letter and Presentation to the Board of Southwest Airlines

/PRNewswire/ -- Elliott Investment Management L.P. ("Elliott"), which manages funds that together have an investment of approximately $1.9 billion in Southwest...

www.prnewswire.com

Looks like I'm going to have to bite the commuting bullet and upgrade now, and I hate commuting.

Private equity ruins everything it touches.

 

[ASpilot2be]

Ll


I believe that is correct. Fallout from the Eastern debacle.

You ruined my perfectly good quip. My quip was working. And you ruined it.

It deserved to be ruined.

 

[ASpilot2be]

Private equity ruins everything it touches.

I would argue Apollo did pretty well at Sun Country.

 

[MikeD]

It deserved to be ruined.

I hear he teaches business ethics classes now.

 

[DE727UPS]

Probably teaches airline labor classes at law schools on how to attack union contracts.

 

[MikeD]

Probably teaches airline labor classes at law schools on how to attack union contracts.

That would be well within his scope of expertise. How to fleece a company.

 

[ERfly]

 

[Minuteman]

This Elliott company has an odd portfolio. They own Barnes & Noble, Cabelas, Softbank (lol), and famously called for the ouster of Jack Dorsey at Twitter (they got out when Muskman made his offer). They seem to be a one-trick act of huffing and puffing until there's some austerity and maybe a noble is goosed-out of their position.

 

[alaskadrifter]

MICHAEL!!!

Identity theft is not a joke Jim!


Has no one told them how to make a small fortune in aviation yet??

 

[Richman]

“Hey Clubber, what’s your prediction for the fight?

“Pain”

 

[killbilly]

“Hey Clubber, what’s your prediction for the fight?

“Pain”

"If he dies, he dies."

 

[Screaming_Emu]

I would argue Apollo did pretty well at Sun Country.

And all things considered, I think Atlas has been improving. There will be some growing pains with the Amazon contract going away, but I think not having to answer to a bunch of shareholders has been helpful, plus getting rid of some awful management.