Southwest names Rakesh Gangwal as independent board chair

Southwest Airlines Monday named Indian American aviation veteran Rakesh Gangwal as the independent chair of the budget carrier’s board of directors.

Gangwal, the co-founder of India’s largest carrier Indigo, has been a member of the Southwest Airlines board of directors since July 8. Previously, he served on the boards of US Airways Group, CarMax, Office Depot, OfficeMax and PetSmart.

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“We are embarking on the next era of change at Southwest as we build upon its many successes and storied past,” Gangwal said, according to a company release. “Our critical priority as a newly constituted Board is to come together to work closely with Bob Jordan and the rest of the management team to return the carrier to superior financial performance.”

Bob Jordan, President, Chief Executive Officer, & Vice Chairman of the Board, said, “On behalf of the entire Company, I look forward to working with our new Board as we execute our plan and deliver for our Shareholders. I especially want to thank our People for their unwavering commitment to each other and to providing exceptional service to our Customers. Our People are at the Heart of Southwest’s Culture and what separates us from the competition.”

On Oct 24, the Dallas-based company announced the six new members of the board, the same day it announced former Executive Chairman Gary Kelly was accelerating his retirement, which went into effect on Nov 1.

Kelly previously planned to retire next year following pressure from the hedge fund Elliott Investment Management, which has acquired an 11% stake in the airline and pushed for changes to enhance its financial performance and stock price, CBS News reported.

Elliott holds Southwest’s management responsible for the airline’s stock price dropping by more than half in three years. Along with Kelly, the hedge fund sought to replace CEO Robert Jordan, but he will remain in his role.

In a statement, Kelly expressed satisfaction with Southwest and Elliot’s collaborative agreement, noting that the partnership continues to refresh the Board by adding new directors with diverse and complementary skills and experience.