According to filings with the Securities and Exchange Commission, Gangwal bought the shares between September 30 and October 1, at prices ranging from $29 to $30 per share. This move aligns Gangwal’s interests closely with those of Southwest’s shareholders, strengthening his role in influencing the airline’s strategic direction, say experts.
Southwest Airlines, based in Dallas, Texas, is known for its low-cost carrier model and its extensive domestic flight network. The company has a long history of profitability and innovation in the airline industry.
Gangwal’s decision to increase his stake in the company comes at a pivotal time as Southwest aims to drive long-term growth and enhance shareholder value, experts added.
Last week, the company hosted an Investor Day in Dallas, where President and CEO Bob Jordan presented Southwest’s “Southwest. Even Better.” transformational plan.
Jordan outlined the airline’s strategy to achieve a return on invested capital (ROIC) of at least 15%, well above its weighted average cost of capital (WACC). The plan is projected to drive approximately $4 billion in incremental EBIT contribution by 2027.The plan is built on four key pillars: optimizing the business with tactical initiatives such as network improvements and evolving revenue management practices; monetizing the customer value proposition through new products and services like premium seating and partnerships with international carriers; increasing operational efficiency through cost-saving measures and better aircraft utilization; and optimizing capital allocation, including a $2.5 billion share repurchase program, he said.Southwest also introduced new leadership with the recent appointments of Bob Fornaro, former CEO of AirTran and Spirit Airlines, and Rakesh Gangwal, who joined the board in July. These moves, along with other board changes, reflect the company’s commitment to bringing fresh perspectives and industry expertise to help execute its growth strategy.
Jordan acknowledged the challenges ahead, stating, “We have a plan that is actionable, time-bound, data-driven, and supported by significant research. I am accountable for delivering on our plan and expected results, as is our team and our Board.” The company aims to provide regular updates on the progress of its initiatives in the coming months.
