Southwest Airlines appoints Rakesh Gangwal, IndiGo founder, as director amidst investor criticism. Gangwal brings extensive airline industry experience to the board.
Facing investor criticism for having a too-insular board, Southwest Airlines has added veteran airline executive and founder of IndiGo, Rakesh Gangwal, as a director.
Before setting up IndiGo with travel and hospitality entrepreneur Rahul Bhatia in 2006, Gangwal led US Airways from 1996 to 2001 and spent a decade at United Airlines, starting in 1984. He also served as chairman, president, and chief executive officer at Worldspan Technologies Inc., a travel and transportation information services and technology company, from 2003 to 2007.
“Having co-founded IndiGo and grown it into India’s largest airline, Rakesh knows the importance of building a business with a distinct culture and enduring profitability,” said Gary Kelly, Southwest’s executive chairman.
Gangwal resigned from IndiGo’s board in 2021 following a bitter feud with Rahul Bhatia over control of the company. Since then, he has been diluting his stake in IndiGo, with his current share being less than 20 percent, down from the original 36.6 percent.
“I have long admired Southwest Airlines and am honoured to join the board,” said Gangwal. “Together with the rest of the board, I look forward to supporting the company’s strategic direction and building on its well-earned reputation as one of the world’s most admired and respected airlines.”
Southwest’s lagging financial performance and insular culture have been focal points for criticism by Elliott, who said the airline has “written off” sources of revenue over the past 15 years that were adopted by rivals. The addition of Gangwal is seen as a move to bring fresh perspective and expertise to the board, addressing these concerns and positioning the airline for future growth.
