Rakesh Gangwal invests over USD 100 million in Southwest Airlines shares | Hospitality Career Profile
Abhishek Mukherjee 
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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 percent, well above its weighted average cost of capital (WACC). The plan is projected to drive approximately USD 4 billion in incremental EBIT contribution by 2027.The plan is built on four key pillars: optimising the business with tactical initiatives such as network improvements and evolving revenue management practices; monetising 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 utilisation; and optimising capital allocation, including a USD 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. Join the community of 2M+ industry professionals Subscribe to our newsletter to get latest insights & analysis.
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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 percent, well above its weighted average cost of capital (WACC). The plan is projected to drive approximately USD 4 billion in incremental EBIT contribution by 2027.The plan is built on four key pillars: optimising the business with tactical initiatives such as network improvements and evolving revenue management practices; monetising 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 utilisation; and optimising capital allocation, including a USD 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. Join the community of 2M+ industry professionals Subscribe to our newsletter to get latest insights & analysis.
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