Southwest Airlines names IndiGo co-founder Gangwal as chair

Southwest Airlines, one of the largest domestic carriers in the US, has named IndiGo co-founder Rakesh Gangwal as its new chairman.

Gangwal had in July acquired shares in the US airline to the tune of $108 million and joined its board.

“We are embarking on the next era of change at Southwest as we build upon its many successes and storied past,” Gangwal said.

“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,” he added.

Gangwal’s appointment comes a week after Southwest Airlines reached a deal with Elliott Investment Management, one of its largest shareholders, that had sought significant changes at the airline.

The airline also named new board committee chairs, effective immediately, as part of Southwest’s ongoing efforts to strengthen governance and operational strategies.

Lisa Atherton will serve as chair of the compensation committee, Douglas Brooks as chair of the audit committee, David Hess will continue as chair of the safety and operations committee, Chris Reynolds as chair of the nominating and corporate governance committee, and Gregg Saretsky as chair of the finance committee, the airline said in a statement.

“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,” Bob Jordan, president, chief executive officer and vice-chairman of the board, said in the statement.

Gangwal and his family trust recently sold more than 5.83% of their stake in InterGlobe Aviation, IndiGo’s parent firm, reducing their total holding to 13.55%.