Southwest Airlines Names Rakesh Gangwal Chair Amid Board Shakeup

India-West News Desk

DALLAS, TX – Southwest Airlines has named Rakesh Gangwal, an accomplished airline executive and entrepreneur, as the new independent chair of its board of directors. Gangwal’s appointment, effective November 1, comes amid significant changes within the Dallas-based carrier, including the accelerated retirement of former Executive Chairman Gary Kelly. The move is part of a broader strategy to restore Southwest’s financial strength, with the airline facing increasing pressure from investors.

Gangwal, an Indian American businessman known for his role in co-founding IndiGo Airlines, India’s largest carrier by market share, brings a wealth of experience to Southwest’s leadership. Before joining Southwest’s board in July, he served on the boards of US Airways Group, CarMax, Office Depot, OfficeMax, and PetSmart. Gangwal was previously the CEO and chairman of US Airways Group and holds an MBA from the Wharton School of the University of Pennsylvania.

In a statement, Gangwal expressed optimism about the future of Southwest. “We are embarking on the next era of change at Southwest as we build upon its many successes and storied past,” he said. “Our critical priority as a newly constituted Board is to work closely with Bob Jordan and the management team to return the carrier to superior financial performance.”

Gangwal’s appointment coincides with Southwest’s response to pressure from Elliott Investment Management, a hedge fund that recently acquired an 11% stake in the company. Elliott has voiced concerns over Southwest’s financial performance, noting a 50% drop in the airline’s stock price over the past three years. The hedge fund advocated for changes in Southwest’s leadership, particularly targeting Kelly and CEO Robert Jordan. While Kelly’s departure has been accelerated, Jordan will remain as CEO.

Kelly, who originally planned to retire in 2025, stepped down in response to investor demands. A Southwest Airlines mainstay, Kelly spent over three decades at the company, first joining in 1986 and eventually becoming CEO in 2004. His retirement marks the end of an era, as Kelly had been a defining force behind the airline’s growth and customer-centric approach.