IndiGo Co-Founder Rakesh Gangwal Named Independent Chair of Southwest Airlines
Indian businessman Rakesh Gangwal, co-founder of low-cost carrier IndiGo, has been appointed as the independent Chair of Southwest Airlines' board of directors, succeeding Executive Chairman Gary Kelly. Kelly had held this position since 2008, when he took over the roles of Chairman and CEO from Southwest Airlines' co-founder, Herb Kelleher.
This appointment takes place amid a reshuffling of the airline’s board, which was one of the requests put forward by investment fund Elliott Investment Management after it took a significant equity position in the airline.
Elliott has been dismissive of the airline’s current management, stating that it was massively underperforming its industry peers. As a result of Elliott’s activism, Southwest Airlines agreed to a board shake-up, with the appointment of half a dozen new members, most of whom had been proposed by the asset manager.
Originally from India, Gangwal moved to the United States in the 1970s and held senior posts at United Airlines, Air France, and US Airways during the 1980s and 1990s, as well as in other companies outside the airline industry. Between 1998 and 2001 he was President and CEO of US Airways Group (which was acquired by American Airlines in 2013).
In 2006, together with co-founder Rahul Bhatia, Gangwal launched IndiGo Airlines, a budget carrier that has become one of the largest airlines, not just in India but in the entire world, with nearly 400 aircraft in operation and orders for nearly 1,000 more.
As independent Chair of Southwest Airlines' board, Gangwal will oversee the airline's transformation plan, focusing on streamlining operations and enhancing ancillary revenue and profitability.