Elliott, Southwest in early settlement talks for board representation

Southwest Airlines and Elliott Investment Management are in discussions for a settlement that would give the activist investor a significant presence on the airline’s board. The talks are centered around giving Elliott less than full board control, as Southwest’s board will be reduced to 12 members next year. Elliott has called for a special meeting to potentially oust CEO Bob Jordan and make strategic changes. Southwest is planning major shifts to its business model, including eliminating open seating and offering extra legroom seats. The airline aims to increase revenue and profits through these changes. Southwest will report its third-quarter results soon.