Change is Coming for Southwest Airlines!

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Are Southwest Airlines in trouble? They are under attack from an activist investor! But… what are Activist Investors? Can somebody just buy a… “chunk” of an airline, get rid of its leadership and COMPLETELY change the way it works? Is THAT going to be the fate of Southwest Airlines, and… do they deserve it?
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Below you will find the links to videos and sources used in this episode.
SOURCES
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• Southwest Airlines exe...
• Book Summer 2024 today...
• Why investors should c...
• Activist Elliott repor...
• Abraham scores his fir...
• The Vulture: How Billi...
• Deal in the cards for ...
• Captain Ernie leads wi...
• American Airlines file...
• Airline merger, should...
• Southwest To Buy AirTr...
• Southwest Having Bigge...
• CEO Gary Kelly on Our ...
• Modernizing our Tools ...
• Getting Ready for Wint...
• Southwest Airlines pil...
• Southwest Airlines CEO...
• In a Blink: Denver | S...
• Future aircraft interi...
• Discover Premium Econo...
• Southwest Airlines wil...
#Mentourpilot #pilot #aircraft #boeing #southwestairlines
Elliot Investment Management presentation:
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Опубликовано:

27 сен 2024

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Комментарии : 1,2 тыс.

@MentourNow 9 дней назад

Go to saily.com/mentournow and use the code mentournow to get an exclusive 15% off your first purchase.

@Kobby_Sweetboy 4 дня назад

Please now that you are on break, we need more videos on the MENTOUR PILOT channel, at least two videos every week. #WENEEDMORECONTENTS

@blablablablablablablablablbla 3 дня назад

It's actually infuriating how when the topic goes to this subject, everyone is suddenly an expert on business, economics, and stocks. Just like they were experts on virology, Ukraine, and everything else depending on the season. I know enough about this subject to say most of the comments are nonsense drivel.

@seriouscat2231 2 дня назад

Please focus on plural vs. singular in your speech. An individual "does", many people "do", även om på svenska alla bara gör. Your English is otherwise remarkably good, but this is the one thing I catch now and then.

@phpn99 4 дня назад

We used to call these guys Corporate Raiders, which is more appropriate than "Activist Investor", which is utter BS.

@henghistbluetooth7882 4 дня назад

They’re always tough and dramatic sounding titles. Goes along with ‘bull market’ and ‘bear market’. Projection much.

@VanillaMacaron551 4 дня назад

Corporate raiders seek full control. Activist investors buy a tiny number of shares.

@kavinskysmith4094 4 дня назад

He's from Europe, their used to taking it up the backside

@georgeprout42 4 дня назад

@@kavinskysmith4094in Europe we have free education and healthcare. Not multiple mass shootings daily. And no, you can't come here.

@ninjalectualx 4 дня назад

"Activism" usually refers to the environmental good guys, it was shocking hearing it used with a negative connotation here. Is this actually normal financial terminology?

@noreverse1152 5 дней назад

This is the sheer irony of an "activist" investor coming from outside and pretending that they can fix a company. I have seen this countless times in my time in tech sector. It never worked out well because all the "activist" is after is ROI over 5 years.

@mytech6779 4 дня назад

Fewer years if they can manage the pump and dump well enough.

@SeekingTheLoveThatGodMeans7648 4 дня назад

@@mytech6779 Well, we're going to ride this roller coaster till somebody sees fit to change the rules.

@jamescollier3 4 дня назад

well, they could replace and upgrade the computer systems

@robincray116 4 дня назад

Over 5 years sounds generous are you sure its not 5 months?

@mytech6779 4 дня назад

@@robincray116 At least a year so they can claim the long term capital gains tax rate.

@jasonnchuleft894 5 дней назад

The problem is that most of those activist investors are only interested in short-term performance. Meaning they don't care what happens after they've sold their shares. So sure Southwest might improve its stock evaluation but what happens after that? Removing seats from a plane doesn't magically make it smaller and more fuel efficient. Nor does it reduce maintenance overhead. Not to mention charging more for "premium" seats just moves them closer to the already pretty close competition. Innovation doesn't mean just barely doing everything everyone else does 😶

@MentourNow 5 дней назад

That’s fair remarks

@johnmckeon4498 5 дней назад

This is my thought too. They're okay with anti-consumer practices. Because all they need to do is make the stock price artificially go up sell off their stocks and then if Southwest or any other company that they do this to crashes and burns afterwards even to the extent of going bankrupt from angering their customer base they don't care because they already made their money.

@johnmckeon4498 4 дня назад

Considering that our transportation system is so privatized. And this kind of anti-consumer behavior destroys transportation companies. I feel that the government has a right to step in and better regulate how this is working on the economic side.

@pyrpoi 4 дня назад

@johnmckeon4498 i do not understand this argument. Because X sector is private and anticonsumer, the government should step in. Do you mean government should take over, directly or do you mean regulation? Would you make the same argument with other economic sectors, say tech or agriculture? I think I've followed the premise but not the conclusion. Could you please elaborate.

@LetztezBatallion 4 дня назад

@@pyrpoi Do you mean government should take over, directly or do you mean regulation? => Both are fine, and both have their pros and cons. Case by case basis Would you make the same argument with other economic sectors, say tech or agriculture? => Yes, any sector of the economy that's so highly privatized and blatantly anticonsumer and antiworker, to the point entire companies and all their employees (plus consumers of that company) get screwed over because of a few rich guys that want to be even richer should be more regulated and/or directly intervened. Hope that answers your questions!

@thomascee 4 дня назад

If they are trying to turn Southwest into the other airlines, that is an absolute tragedy. Activist investors. What pieces of trash.

@JDashRider 4 дня назад

What? They’re just like any other airline except their on time performance is fifth best behind the big 3 and Alaska. Not something to brag about for a company that only knows how to fly one type of plane.

@thomascee 4 дня назад

@@JDashRider NPC

@Coolsomeone234 4 дня назад

@@JDashRider You're not wrong, their operation is horrible but people are idiots.

@ironcito1101 4 дня назад

Assigned seating sounds like a basic "feature" to me. I didn't even know that airlines existed where you just seat wherever. I can imagine people pushing and shoving to get some seat, arguments breaking out.

@dannydaw59 4 дня назад

Discount airlines are losing money with their business model, so how are investors evil for changing to a business model that is succeeding?

@jeremypearson6852 5 дней назад

I hate the whole activist movement. Just because a single individual or entity has enough money to buy a chunk of a bus, doesn’t make them experts in running a company. A hedge fund bought the pharma company I retired from and they recently cut many long time employees. The company was already very profitable.

@dan-bz7dz 5 дней назад

They wouldn't be running the company. Only nudge it in another direction. All they have to do is to persuade the other shareholders. As in any election.

@Saml01 4 дня назад

Ryan Cohen has entered the chat

@jimallen8186 4 дня назад

won’t be profitable for long; will be split into entities so as to more easily shell costs upon one entity that can go bankrupt while siphoning value through another entity. All part of the privatize gains socialize costs movement.

@airdailyx 4 дня назад

well, if companies want to be insulated from stuff like this, then they should not allow themselves to be publicly traded otherwise it’s wide-open hunting season because that’s the way the system works.

@ninjalectualx 4 дня назад

Venture capital destroys everything it touches. Destruction is literally the business model

@AndyVernel 5 дней назад

It troubles me that Southwest will stop being Southwest and they'll turn into another Spirit or Frontier.

@marckyle5895 4 дня назад

I'd rather fly standby on Southwest than first class on Spirit. NEVER. FLY. ON. SPIRIT. AIRLINES

@OTRTrader 4 дня назад

@@marckyle5895 Awww come on bro... You talking a bunch of bananas.🍌

@DabNaggit 4 дня назад

@@OTRTrader maybe they're to pacify the passengers on the average Spirit Airlines flight...

@PureMagma 4 дня назад

They'll be a clone of Delta and United... anyone wanting that "treatment" already flies with those airlines. They need to leave Southwest alone because they are by far the best EXACTLY AS THEY ARE! "If it's not broken don't fix it!" is an adage for a reason. It is the economy that is broken--not Southwest Airlines.

@DabNaggit 4 дня назад

@@PureMagma except they suck now. Used to be good.

@CHunt-cz1ek 5 дней назад

Perhaps Elliott should consider "fixing" Boeing...

@philiphumphrey1548 5 дней назад

Yes. Get them to stop wasting time and energy on D.E.I., sack "diversity managers" etc. and refocus on excellence in engineering and safety.

@jimallen8186 4 дня назад

@@philiphumphrey1548 DEI had nothing to do with Boeing’s weakness. Jack Welch aclolytes did. DEI has nothing to do with having moved away from engineering, if anything DEI candidates are more focused on things other than stock value. Cost cutting and socialization of risk while privatizing profit is a very white male particularly English male thing to do which is to say what went wrong at Boeing is the opposite of DEI.

@mytech6779 4 дня назад

@@jimallen8186 "socialization of risk while privatizing profit" happens to be the definition of the Equity in DEI

@Synergy7Studios 4 дня назад

@@jimallen8186lmao socializing isn't a white male thing. Most proponents of socialism are Jewish or some other non-white. DEI hires are concerned with maximum pay check for minimal work and minimal qualifications. They skate by and fail upwards constantly.

@filanfyretracker 4 дня назад

@@philiphumphrey1548 DEI has nothing to do with that, stop spreading such Fox News myths that are usually regurgitated by Elon's twitter account. Boeing was gutted out because it became totally focused on Wall Street satisfaction, At all costs they had to jack up the share price. Boeing's downfall was 100% caused by letting the management of McDonnel Douglas become the management of Boeing during the merger. MD management was purely share price focused and Boeing was engineering focused, Because they knew a well engineered product made money, just not as much as a purely cost focused operation.

@d_mosimann 5 дней назад

So yet another company is starting to focus on shareholder value primarily. That's very bad news for employees and customers. And what such a culture can lead to, can be seen at Boeing.

@SeekingTheLoveThatGodMeans7648 4 дня назад

Petter knows, too, because he has to fly the outcome.

@d_mosimann 4 дня назад

@@SeekingTheLoveThatGodMeans7648 Not anymore, he's doing RU-vid full time now.

@mrvwbug4423 4 дня назад

Well in the case of SWA, without changes they were going to be bankrupt within a few years. They were complacent too long and their competitors took a ton of their market share.

@tomh648 4 дня назад

Regardless of recent religiously-held political beliefs, the shareholders own the company. SWA has suffered greatly under their current leadership. Herb Kelleher would be ashamed.

@kidjackson987654321 5 дней назад

The problem with this activist investors is that they only aim for fast profits and stock increase. They dont care what happens after they sell

@agayoso27 4 дня назад

Thats what all wall street does...

@svgalene465 4 дня назад

Similar to a private equity takeover, which happened to the company I work for. It went from being repeatedly voted one of the best companies in the U.S. to work for to being unable to hold on to its experienced workforce and barely fending off bankruptcy.

@kidjackson987654321 4 дня назад

@@agayoso27 agree but probably not to that degree

@benchoflemons398 4 дня назад

People keep saying that, but it is not true. The market is forward looking, management might not be but the market is always forward looking. There have been some great meta analysis on this lmk if you want.

@kidjackson987654321 4 дня назад

@@benchoflemons398 we are not talking about the market in this case.

@JM-vh7oc 4 дня назад

I have been a longtime loyal rider of Southwest. I was so sad when they announced they were changing over to the same model as the other airlines. Most all SW flights are 100% booked. Most of us like the open seating by category, plus how easy they make it for pricing by not charging all the extra fees. Baggage is no cost and ease of making changes to the reservations If they change to be like the other airlines, there will no longer be an incentive to be loyal to them. They are a little higher in pricing generally - but think those of us that like the current system do so because it is so convenient for us. IMHO - bad move by SW to become just another carrier.

@StunningModelAaliyahAustin-k7g 4 дня назад

Activist investors can be a good thing but that's the rarest possible case. More likely is seeing them gut the organizations they interfere with, firing huge amounts of staff, selling off assets, etc. There's a reason they're called vulture capitalists.

@RS-ls7mm 4 дня назад

Sounds like Boeing. They did this when they bought the very successful company I worked for. Mostly destroyed now. Corporate raiding at its worst.

@JamesDavidWalley 4 дня назад

It sounds like their plans (premium seating, baggage fees) will essentially turn Southwest into just another standard, non-LCC airline, but without some of the amenities of the legacy carriers. Not a great deal for the average customer.

@NicolaW72 4 дня назад

@@JamesDavidWalley And surely not the way to make Southwest profitable on the long run - but probably enough to get away with a bunch of Billions of Dollars on the short run.

@99domini99 4 дня назад

So basically just another rich fuck destroying everything for his own financial gain?

@DoktorHalloween 4 дня назад

Oh, I didn't realize that, the vulture capitalist has been spun into an activist capitalist?

@idanceforpennies281 5 дней назад

"I am not the destroyer of companies, I am the liberator of them". Wall Street, the movie, Gordon Gecko.

@operacarmen 4 дня назад

Anti-semitic movie and anti-semitic comment

@LoremasterYnTaris 4 дня назад

@@operacarmen I'd be curious to your reasoning on calling this an antisemitic comment. Seems pretty relevant to the subject matter to me.

@idanceforpennies281 4 дня назад

@@operacarmen Bat shit crazy comment. With zero likes.

@operacarmen 3 дня назад

@@LoremasterYnTaris clearly was criticizing the behavior of semitic inverters .. stop acting clueless

@msmith53 4 дня назад

Thank you so much for this “expose” of Elliot! As a frequent customer of SW Air, I have noticed slight changes and wondered WHY? The insidious chicanery of some of these investors affects the unsuspecting clients/passengers. You are a ray of sunlight! Thx!😊

@gregswank4912 4 дня назад

When I first started flying on Southwest I was annoyed by the lack of seat assignment, but once I got used to it, I found it actually works quite well. One of the reasons I loved Southwest, was the lack of baggage fees. As a consumer, I don't like getting dicked around by hidden fees, and like to see the full price up front. Fees make me feel like I'm getting ripped off. Many times I found that once you add the hidden fees on, Southwest became the best value. I have recently tried other budget airlines and felt like I was on an inner city bus. I refuse to ride on any plane that treats us like cattle, or makes the seats uncomfortably small, close, and uncomfortable. Flying on a plane shouldn't be like a pain tolerance marathon.

@niftybass 4 дня назад

Southwest has been my favorite for decades. Part of what I like is that they're not like the rest of the airlines. They don't try to bullsh!t their customers. The fact is that an airline passenger is ultimately buying a ticket for a seat in a metal tube to hurtle through the air on the way from point A to B. They don't distract themselves with trying to emulate all the complexity of a lot of special cases and different classes of passengers. That said, adding 3-4 rows of premium seating isn't too bad, but keep the number of options to a minimum. Things like charging extra for a reasonable amount of baggage for a week is infurating to customers. Southwest has focused on their customers' wishes: An average seat on a well-maintained plane with better than average pilots, better than average safety, and cheaper tickets than most other carriers. If Southwest became like TWA was, I'll never fly with them again. I'm talking about high ticket prices, and assuring passengers that TWA's seats & metal tubes are somehow better than everyone else's, while having the worst on-time of any carrier I've ever flown. That's ultimately a recipe for bankruptcy, which is the Darwin Award of the airline industry.

@ohheyitskevinc 5 дней назад

The only “financial activists” SWA majority owners need to listen to are: the passengers. Elliott may have thrown $1.9 billion at the airline, but the passengers throw $7.35 billion at the airline every single year and are by and large happy with them. If Elliott were interested in the passengers - fine. But they’re looking at profit, not passenger satisfaction.

@AlbertoNencioni 4 дня назад

WHY should be Elliot interested in passengers? They are interested in making money. By the way, United is ALSO after money: passenger's satisfacion and love are by-products, they are welcome but do not pay salaries.

@doujinflip 4 дня назад

Unfortunately US laws compel corporations to prioritize their shareholders over their stakeholders.

@SeekingTheLoveThatGodMeans7648 4 дня назад

@@doujinflip This is, to me, an obvious "Well, FIX it!" situation. Well, we may well have a reformist wind coming at us this November. Let's make the most of it if it does.

@nomore6167 4 дня назад

@@AlbertoNencioni "WHY should be Elliot interested in passengers?" - Because if the desired changes are implemented and they cause passenger (customer) dissatisfaction, then the passengers will go elsewhere. And without passengers, the airline goes bankrupt. See how simple that was to connect the dots?

@NicolaW72 4 дня назад

@@AlbertoNencioni Exactly.

@BriGuyIT 3 дня назад

Not sure exactly what the industry would call replacing senior management and 10 board members. I'd definitely call it a "hostile takeover."

@Synergy7Studios 4 дня назад

A lot of customers, myself included, are very attracted by the lack of assigned seating and free checked bags. Its one of the main reasons I choose southwest because it shows me that they're still a company with real people behind it, not a cold machine designed to extract every dime from their customers.

@rreichar1 4 дня назад

No assigned seating and no fees for checked bags are features not bugs IMHO. They’re the primary reason we have flown Southwest for many decades. They are some of the things that differentiates them from other airlines.

@walk4718 5 дней назад

As a Texan, Southwest has always been a hero in my eyes. Your video is the best summation that I’ve seen that explains the problem. Hopefully a few “tweaks” in the short run will hold off the wolves until the Max 7 comes on line.

@mrvwbug4423 4 дня назад

SWA the "good" Texas airline vs American who are probably the worst legacy carrier in a first world country. Or should we call American by their correct name, America West haha, though to be fair AWA was actually a decent airline before they started playing corporate identity theft with USAir and AA.

@Elementalism 4 дня назад

Southwest has been the most consistently profitable airline in the country. This guy is going to change them into American, Delta, or United and then wonder why their profits mimic those airlines as not being consistent and require bankruptcy protection every 15-20 years.

@falcon_three_fifty 4 дня назад

One of the many reasons I love flying Southwest is there is no assigned seating. These greedy changes are unwanted!

@mrvwbug4423 4 дня назад

That's also one of the biggest complaints that people have about SWA. They said they won't charge for assigned seating, which means they're giving up their "pay extra for earlier boarding group" for what they hope will attract new customers.

@riel0563 3 дня назад

@@mrvwbug4423they won't charge for now. When enshittification starts, they will.

@wren7300 Час назад

One of the reasons I don't like flying them is because of not being able to pick my seat. And data shows that's what a majority thinks too.

@Josh-b3c 5 дней назад

I mean you've got to admit they've got some balls on them I own 10% of the company so I should get to make 90% of the decisions and I'm going to get rid of the top two people and then 10 out of 15 of the other people

@jimallen8186 4 дня назад

If the other 90% of owners aren’t forming a bloc..

@mytech6779 4 дня назад

Most investors are passive and don't go to meetings or vote, usually just a few major mutual funds and other holders of 5-20% that actually show up and know the details resonably well.

@mrvwbug4423 4 дня назад

Well if you own 10% of a company, you only have to sell your ideas to 40% of the other shareholders to make changes.

@mrvwbug4423 4 дня назад

@@mytech6779 Yup with airlines, most of their stockholders are mutual funds, index funds, etc. aka "institutional investors"

@riderpaul 4 дня назад

Offering premium seats and charging for baggage will destroy Southwest.

@rogermwilcox 4 дня назад

Assigned seating? Checked bag fees? It WON'T BE SOUTHWEST AIRLINES ANY MORE if they do this!!

@bemist7954 4 дня назад

AMEN!

@msromike123 5 дней назад

Maybe Elliott is saying they should have gone bankrupt for increased profitability?

@alexevansuk 5 дней назад

Buy in, scare existing and potential shareholders. Buy more shares

@mytech6779 4 дня назад

Exactly, there are many in business who see bankruptcy write-offs and government bailouts as legitamate revenue streams.

@XMysticHerox 4 дня назад

"Activist" investors is a weird term. They are mostly just doing it for personal profit. Hardly activism.

@mytech6779 4 дня назад

Active investors rather than passive investors is accurate. "Activist" seems to be a rather poor twist of language.

@gagamba9198 4 дня назад

You don't understand things. Activists are those who want to change things in ways they deem better. In business the goal is to earn a profit, preferably to maximise it. Why does a person buy shares in the company? To get a portion of that profit in the form of dividends and/or to see the value of the share increase. Both are these are personal profit, though some investors invest on behalf of others such as a pension fund. They aren't buying shares to frame and hang on the wall. The profit one earns should be at least commensurate to the risk. Anyway, nice to see a viewer from Pyongyang,

@gagamba9198 4 дня назад

@@mytech6779 No. A passive investor hands funds over to a someone else such as professional fund manager to invest on his/her behalf for a fee. An active investor is one who does the research on his/her own. An activist investor is one who holds no managerial or board of director role in the company but wants to make changes to the company to improve the bottom line so that the dividends and the share price increase. There is no twist. Activism consists of efforts to promote, impede, direct, or intervene in social, political, economic, or environmental reform with the desire to make changes in society toward a perceived common good. The activist investor in this context is promoting economic and social change at Southwest. The society is Southwest Airlines and the common good is the betterment of all the investors' investment in the corporation.

@christianwall7181 4 дня назад

@@gagamba9198 That’s the problem though: Elliott is famous for taking very little risk. Its activist investments are typically hedged and derivative based (using borrowed stock) so it has very little downside, but benefits very significantly from anything short term that lifts the price e.g. leverage and and stock buy-backs, which is clearly the intention here, even if not overt.

@cageordie 4 дня назад

This is usually asset stripping. They want to cash out part of the company to get a load of the cash for themselves. That trashes the company. Cabela's was the top hunting store, but they sold them off to Bass Pro Shop which is basically the Wollworths/Kmart of outdoor stores. Totally trashed the company. They used to have great quality clothes, and now they sell cheap trash. You assume these people are making an honest attempt to run the company more effectively, rather than a way of making a quick buck.

@scoopydaniels8908 4 дня назад

It sounds like every company they've gotten involved with has done WORSE for their involvement with this Investment Group.. thankfully I have never been and don't plan to be involved with Southwest Airlines

@Starship007 5 дней назад

I live in Hawaii. Southwest started flying to Hawaii around 3-4 years ago. The crew flys to Hawaii then flys interisland for a few days before returning to mainland USA. When Hawaiian’s 717’s are completely full interisland the SW 737 Max’s are half empty. Such a large plane for island hops.

@Brillig2 4 дня назад

They still use 717's?

@finchman1 День назад

@@Brillig2Yes

@vintagelady1 4 дня назад

I wouldn't trust those greedy money sharks any farther than I can throw them. There was another huge missing piece in that Elliott presentation---customer satisfaction & loyalty. And their slick little 51-slide presentation could have been broken down into exactly one statement: Southwest needs to become just as shitty as all the other airlines with their deliberately deceptive pricing & complete lack of concern for their customers. Pfui! My daddy taught me to live by the rule,"If it ain't broke don't be fool enough to fix it. So WHAT if SW revenue has gone down---are they still able to pay their employees & buy fuel & maintain their planes & their CEOs' salaries? This is purely a money grab by a greedy company for their greedy investors for whom there is never enough wealth b/c that's all they value. It's the American way.

@foxracing8973 4 дня назад

I watch a RU-vid account called Bright Sun Films that makes videos on big companies that have gone bankrupt in the past. Easily 90% of the stories all have one thing in common before they went bankrupt: some kind of investment management company did to them what Elliott is doing to Southwest...

@Private-GtngxNMBKvYzXyPq 4 дня назад

I’m just waiting to see how long Southwest ends up being another Bright Sun episode. It’s always a hedge fund or an activist investor.

@miramichi30 4 дня назад

This is like blaming the doctor when a cancer patient dies. Activist investors don't get involved when business is booming.

@LoremasterYnTaris 4 дня назад

@@miramichi30 True, but they love to get involved when business is good enough. Then they strip away everything they can and make a quick exit with as much value as they can carry, leaving everything else to die. That's why sane people call them what they are: corporate vultures.

@blablablablablablablablablbla 3 дня назад

I was a stock trader for a good 10 years. This situation is actually pretty uncommon. Maybe that channel is deliberately searching for those stories since it riles people up.

@blablablablablablablablablbla 3 дня назад

@@LoremasterYnTarisTell me you know absolutely nothing about stocks without telling me. A profitable company is worth so, so many more times than the value of just liquidating a company.

@TheLifetraveler1 4 дня назад

Has a shareholder in Southwest who has invested in the company for more than 15 years. I see absolutely no reason to have these idiots messing with a good formula.

@jaysoncook77 4 дня назад

As a former and long time employee. This is much needed. Upper management had been disconnected for the past 15 years. We all have seen it and expressed it to deaf ears.

@Coolsomeone234 4 дня назад

Finally a sane comment here. That company is embarrassingly overstuffed in management. How many managers do you need, really?

@alexnicolaou3579 4 дня назад

@@Coolsomeone234 we have a saying for that. "too many chiefs, not enough.. [native Americans]"

@richardclark4610 4 дня назад

Southwest is popular with the American flying public because it's CHEAPER to fly on Southwest! Adding premium (more expensive) seating and charging for checked bags etc will, in the long run, COST them customers and further reduce their bottom line....be careful what you wish for!!!

@Nehpets1701G 5 дней назад

They need to move with the times, but Elliott are not in this for the long game. They need to be careful of being pinned down by stock market parasites.

@barbborja1910 4 дня назад

I’m sorry to hear that Southwest is changing to match the other carriers. The biggest reason I fly SW is because they DON’T nickel and dime you to death and that the price you pay for a ticket is the end of it. Basically, if I wanted what other airlines were offering, I wouldn’t fly SW to begin with. Since they will be just like everyone else, I have no incentive to fly with them anymore.

@dcxplant 5 дней назад

Some of you young people have never heard of Frank Lorenzo's or Carl Icahn's antics in the airline business. Re the Max's, even the larger, burns 20% less fuel than the older 737 with CFM's due to the LEAP engine. This throws apples to apples comparisons out the window, as the comparison is apples to oranges. A compensating factor must be in the comparisons between older 737's and the Max's with LEAP engines.

@jimallen8186 4 дня назад

Jack Welch

@juneabbey9538 4 дня назад

Yes and no. Sure, a part-empty Max-8 burns less a little bit fuel than a full -700 with the same number of passengers, but it is still costing a lot more to run because of the capital cost. The -700 is worth little and long since paid for; a new Max-8 (even if purchased at a big discount off list price) costs many millions, and that capital has to be serviced - whether that is in leasing charges, interest on a loan, or interest forgone if you have paid cash up front, it's still big money.

@mrvwbug4423 4 дня назад

@@juneabbey9538 There's also labor charges involved. A -800 requires one additional flight attendant vs a -700 so that is one additional crew member that has to be paid. SWA runs 147 seats for a reason, they need a 4th FA at 150 seats. Same reason why JetBlue runs 190 pax on their non-Mint A321s, at 200 pax they need a 5th FA (the general rule is you need 1FA for every 50pax, and aircraft with 19pax or less capacity can fly without a FA).

@roberre164 4 дня назад

The names Lorenzo and Icahn still sends shivers up the spine. The airline industry seems to attract the worst of the worst "management".. cue Alan Joyce, Dixon and many others.

@rynovoski 4 дня назад

Petter: you're not thinking like an American capitalist. What you may be missing is that investors like these do not feel that avoiding bankruptcy or restructuring is a good thing, they think it's a missed opportunity to screw over their employee groups, suppliers, etc., in a favorable venue for cutting costs. I am very confident that they would point directly to what these carriers did in the decade after 9/11 and the money they saved by gutting employee groups. They could be making more money be shafting the customer and charging fees and all sorts of other things. How the airline performs financially or in terms of customer satisfaction doesn't matter AT ALL. Shareholder returns are the only thing that matter. This place is a hellscape, pure and simple.

@scriptorpaulina 4 дня назад

So they ruined Barnes and noble, they fucked up Cabela’s, and now they’re going to screw SWA. And they’re starting by making it more like every other airline

@pgramsey1 3 дня назад

You forgot Sears.

@JockMurray-v1o 5 дней назад

Didn't Carl Ikhan do a number on TWA years ago?

@scpatl4now 5 дней назад

Yes. He destroyed TWA

@christinecain5094 4 дня назад

I’m a loyal SW flier for years. I get good customer service and some perks without having to spend a lot. The free checked bags are a huge deal for me. I recently flew to a conference where I had to bring a suitcase full of books. It wouldn’t have made sense for me to fly them without the free checked bag. I paid a little more for an upgraded boarding position ($20) because I had a 45-minute connection in Atlanta. I appreciated being able to do that so I could be in the third row. It didn’t cost me hundreds more. If it comes down to them being the same price as the other major carriers, I’m not sure I’ll be as loyal.

@johnskrb 4 дня назад

I love the open seating, free checked bags, and friendly customer service, and will likely reduce the percentage of my flights on SWA if they eliminate those features.

@wildzach 4 дня назад

Open seating was always my favorite part of flying Southwest 😢

@johnsrabe 4 дня назад

The elephant in the room is the lack of any discussion about the customer experience. Are we going to get more leg and arm room, or continue to be squeezed into a tinier sardine can?

@originalbluebuddha 4 дня назад

If Elliott has their way, you'll be paying for oxygen by the gulp on the flight.

@walmartdog1142 5 дней назад

The owner of the failing Steak and Shake chain has bought a huge stake in Cracker Barrel, trying to **F** it up too.

@jimallen8186 4 дня назад

Did they F it up or is it piracy meaning siphon away the value and leave other “stakeholders” holding the bag?

@walmartdog1142 4 дня назад

@@jimallen8186 Used to be a good place to eat, good service etc, Not now.

@SwordQuake2 4 дня назад

Ever heard of punctuation and actually spelling out words?

@cylonred8902 4 дня назад

The "activist" wants to make Southwest a normal airline and less of a unique, lower cost airline

@larrydugan1441 4 дня назад

I have yet to see an activist investor that didn't strip out the assets and load the airline up with debt.

@HertsCommuter 4 дня назад

Having seen a lot of private equity plays, the goal is short term gain from leverage (debt) and asset disposal, leaving a business solely reliant on a stable cashflow. But the cost-cutting required to achieve that strong cashflow and the lack of assets to fall back on in the hard times means that at the first hiccup the business fails, the activist investors or private equity having long since recouped their capital by way of dividends from the short term profits. Sure, not all of them play out like this, but many do.

@CM8008s 4 дня назад

Southwest Airlines was unaffected by the CrowdStrike Microsoft outage due to their system running on Windows 95.

@Slider6 4 дня назад

If/when sssigned seating and charging for bags happens, I'll never fly SWA again.

@JMG717 3 дня назад

2025 is shaping up to be a GREAT year already* *note to sarcasm

@DoktorHalloween 4 дня назад

Southwest has been my favorite domestic airline. I was even caught in the travel SNAFU. What makes Southwest so good, for me, is, they treat me like a person, like I matter. Even with the travel SNAFU. When Mr. Kelleher died I was concerned Southwest's business model could be at risk. And, I heard about this "activist investor" this morning. Time will tell, and I fear Smelliot could spell the destruction of a great airline in favor of squeezing profit out of every kilogram.

@symbionese2348 4 дня назад

"Kelleher here; OPEN the door!" "Sorry, Herb, we're boarded. You can catch the next one." Southwest Airlines stayed on time (unless providentially detained.)

@MonkPetite 5 дней назад

Well… on your question about a Activist investor .. MD was bought by Boeing.. the story is well known as Netflix made a document about it. MD won 😂

@mrvwbug4423 4 дня назад

Yup, MD's shitty management practices took over Boeing.

@tomedgar4375 5 дней назад

Southwest used to be my go to for travel, no longer. Customer service and employee attitude has lost my business. Add their reduced legroom and I happily pay more to fly elsewhere. Mistakes happen but there is no excuse for rude.

@Basement_crusader 5 дней назад

Southwest stopped being my go to when they suggested I euthanize my parrot in order for me to complete the second leg of my flight because someone forgot to tell me that birds are except from their carryon pet policy.

@ButterBradb 4 дня назад

@Basement_crusader took a 5 second google search to find this, do you due diligence my friend! Doesent excuse how you were treated though.

@mytech6779 4 дня назад

@@ButterBradb Yeah people don't read. Alaska had to reduce their carry-on size for everybody because people who failed to plan had problems when connecting to other airlines with smaller limits. (A clear warning saying "This is larger than other carriers' size limits. Do not use for connecting flights." [paraphrased] didn't seem to help.)

@jamescollier3 4 дня назад

dei and 2020 the economy

@CantEscape1.5M 5 дней назад

When I heard they broke down I honestly thought it couldn't get any worse.

@Anurania 4 дня назад

I've lived in the US for over a decade and Southwest is the only airline I've ever used here. I love that bags are free, and it's also the cheapest airline for tickets. I've always been able to fly anywhere in the mainland for under $100 each way. If the ticket price changes at any time after you book they also let you get a credit for the price difference, so I have hundreds in credit to pay for future flights because I request credits when they do those $50 sale weeks. The open seating policy is a bit frantic because you have to check in at exactly 24 hours before the flight to get near the front of the line for boarding and find good seats but I've never had a problem doing that. I'm not opposed to assigned seating as long as they don't charge for it and you just select from the available seats when you book. If they start messing with the core of their business model they could lose me as a customer though.

@eltecladistadeloeste 4 дня назад

In Argentina we call them "vulture founds", they are plain criminals

@NekomatchaJun 4 дня назад

Premium seats on planes larger then their routes need makes sense to me, but all the other changes erase what made Southwest meaningfully different to other airlines while also forcing ticket prices up across the board. We go to Southwest for reasonable prices and a relaxed experience. Also, anyone who forces a radical change in management is highly suspect in both methodology and motivation. Elliot is an investments company, which means the dollar is their only concern. They don't care about anything else and will most likely encourage running the company into the ground for the highest profit possible in a short term period. I've seen it across multiple industries and have worked for companies with this planning in the past. I wouldn't be shocked to see complaints of poor work culture and environment with low morale within their 12 month plan to increase share prices.

@jason6919 4 дня назад

A close friend of mine was in M&A acquisitions, and he called it the parachute crew. They went and then found weakness areas. Grab your popcorn. This only gets more interesting.

@nickzales6117 5 дней назад

If you think the super rich have your best interest at heart name me anytime that ever did anything to help you.

@axelBr1 4 дня назад

South West Airlines made a profit for 47 years! Wasn't it Warren Buffett who said "The only way to make money with an airline is to start with a lot of money." Also, saying that Elliot Investment was involved with Barnes and Noble and Waterstones isn't the flex they think it is as both companies have disappeared.

@SkydivingSquid 4 дня назад

I just fly Southwest Airlines for the first time a couple weeks ago, round trip. I thought it was fine. The crew were incredibly professional and interactive. I have no problems with them at all. It would be nice if their fleet had entertainment systems onboard though.

@mrhumpty 4 дня назад

Assigned seating is going to suuuuuuuck.

@KCFlyer2 4 дня назад

Southwest airlines was the leader when their focus was 1.Employees, 2. Customers and 3. Shareholders. Over the years they shifted that focus to Shareholders first. And then they started cutting corners to provide more shareholder value. It's one of the last companies to follow the Jack Welch school of management. So it's fast becoming just another airline.

@MrGus.1 4 дня назад

Heck! Back in the late 70s I took one look at the tiny fleet and the 3 city "network" and decided I didn't want to work for, nor invest in SWA. I totally misjudged the power of Herb. Today, SWA needs another Herb.

@davidnoticiero6728 4 дня назад

I fly 20-30 times a year for business and the vast majority of those trips are on Southwest Airlines. Southwest is not the cheapest fare but with all of the equipment I travel with the 2 free checked bags and singular seating class make it my preferred choice for flights. That said, the end of the open seating policy and upcoming sales of premium seating is for me a troubling development, if the free bag policy ends then it's no different than flying American, Delta, or United, and I'll take my business to the legacy carriers because they will have lost their competitive advantage of value I'm loyal to the culture and differences of Southwest if Elliott decides to squeeze every last dime from passengers then I'll shed no tears as I leave them behind.

@SandraHof 4 дня назад

I left the US over 11 years ago. I return once a year to visit my two brothers and some friends. I always fly SW for my travel within the US. I am happy with them. Plus I often need to buy clothes/shoes while in the US, so I like their 2 free checked bags policy. I do not understand all the hate for them. The thought of them possibly making big changes makes me nervous.

@a62dave 3 дня назад

“Long term expenses? Irrelevant to us. We already have our profit and have moved on.”

@billscarnage 4 дня назад

This could be the beginning of the end for Southwest. "Activist" investor is just the new liberal term for corporate raider. Who was it.. Stephen Wolf who made a career out of this.

@inmitch 4 дня назад

I don't trust Elliott or ANY of these investment companies. Investment companies have no interest in the consumer and Elliott has already ruined Etsy. I'd like to see the end of these investment companies all together, or at least some extreme regulation.

@king-space-snake 4 дня назад

I suppose technically Elliott is an activist investor, better descriptors are vulture fund and corporate raider. Goodbye SWA, you were always troublesome, but somehow endearing. I'm honestly a little disappointed in Peter's take here.

@ryanroberts1104 4 дня назад

I fly SW a lot because of the price, open seating, and lack of first class. If those things are no longer on the table, there is no reason whatsoever for me to fly with them.

@tori8380 4 дня назад

They’re corporate raiders, not activists.

@Gregory-ug1ft 4 дня назад

If SWA appeases Elliot by changing to look like all the other airlines, assigned seats, no Bags Fly Free, why would I or anyone else remain a loyal customer? This is what SWA is truly putting at stake by appeasing Elliot.

@dronyland 4 дня назад

There should be a law against this kind of practice. Big corpo with big money should never be able to buy that much share of a company. Especially if it's just to dictate what they can do or not do afterward. Leave the share to regular people, and the company management to their CEO.

@davidbutton3500 5 дней назад

Companies need to spend money to innovate. If they spend money on that, then how will the execs be able to afford their increased salaries and bonuses? It happens to every company eventually. Greed at the top will always be more important that the future of the company.

@jimallen8186 4 дня назад

Did you watch the episode? The greed here is with the outside intruder, not any internal greed. Those at the top had been there forty years, these weren’t short term profit grabbing persons.

@davidbutton3500 4 дня назад

@@jimallen8186 Yes I did. Did you watch the video? Did you miss the part where SW was a leader and innovator for 30 years, then sat back and did the bare minimum, while their own people warned them of issues that needed to be addressed but no action was taken?

@Marinealver 4 дня назад

Southwest is now regretting painting "Proudly All Boeing" on their planes.

@aszhara2900 5 дней назад

"Activists are the lowest form of human life. They do the same thing politicians do, but for free." I'm still conflicted whether to put activist investors below or above average activists.

@judymacek 3 дня назад

You heard it here first. As some have said- goodbye customer service- stranded passengers will never speak to a real person again, your baggage fees will cost as much as your ticket, if you try to take an earlier flight it'll cost hundreds in ticket change fees, and finally your knees will be in your chest as the seat pitch and seat count will change on every aircraft. Additionally expect a regional carrier to be subcontracted as the new management tries to whipsaw labor rates with the mainline employees; thought you were flying Southwest? Think again. The remaining board members are a collective of 'slash and burners'. Ask me how I know.

@user-cn8wu2ok5s 4 дня назад

Activist investors will destroy this company just like all of the others they have gone after

@Ficon 4 дня назад

The core of SW meltdown was local managers causing ground handlers in Denver to walk off the job.

@AbuPaul 4 дня назад

I'm a strong believer and supporter of Southwest. I only fly with them, mainly because of their friendly and unique ways of doing the airline business. Both you Pieter and Elliott are wrong about SWA. There are no planes flying with empty seats, and neither the change of policy to be "like the other guys" is going to be welcome by the customers. Is this Elliott the same one that bought Sears, merged it with Kmart, sold their massive real estate portfolio, then shut them both down?

@TiaKatt 4 дня назад

I think that was Lampert's, ESL Investments. But Elliot Investments *did* ruin Cabela's and Barnes and Noble.

@wilsonlaidlaw 5 дней назад

One other point would be for South West to stop putting all their eggs in a Boeing basket, which might have alleviated their elderly aircraft/aircraft sizing issues. I recognise that with Airbus' very full order book this would have to be a very long term strategy but with 737 production currently at a total standstill, it might be time to look to the future and diversify. Could they also become the launch customer for an Embraer 737 Max 7 competitor.

@ericmintz8305 4 дня назад

Buying Boeing was a winning strategy when Boeing made good planes. The commonalities lowered the required spare parts inventory, reduced the need for special purpose tools, and simplified mechanics' training. Very few foresaw how fast and far Boeing would fall?

@ds78613 4 дня назад

Airbus is having delivery issues too. If Airbus was the answer, Spirit would be doing great and Allegiant wouldn't be buying Boeing in addition to Airbus.

@weing 4 дня назад

@@ericmintz8305 Actually everyone on the Shop floor at Boeing knew the fall was coming as soon as the decision was made to move the C-suite to Chicago in 2001. It was such a strong company it took 20 years for this to bring on this end but bring it on it did.

@fastmph 3 дня назад

Once bag fees are introduced, LUV becomes just another also-ran.

@onedaya_martian1238 5 дней назад

Yet another great presentation Mentour Team !! It has to be said that 3 of SWA's "draws" to buying a seat are: low fares, unassigned seating, free luggage. It sets them apart ! The expected added revenue Elliot's "elite" financial folks forecast will very likely be offset by much lower loyalty. I have "premiere" status on SWA, but my company's website is putting me on Delta flights now because of price. When SWA matches Delta's (and other's) offerings for seats and luggage, plus starts paying for a better backoffice computer system for flight management and financing the new planes, the competition between carriers will be a race to the bottom with little upside to share price. Elliot Investment's quants will make money the same way "McDonald Douglas financiers" did, but with the same type of losses of quality and reputation that Boeing is experiencing. More red-eye's for dividends anyone, right Mentour ?

@skyra1der 4 дня назад

I was wearing my "This is How I Roll" t-shirt last weekend and someone complimented me on it!!

@johnmckeon4498 4 дня назад

I think a large portion of their customer base including myself would be uninterested in flying on Southwest if they go for the assigned seating. And especially if they take away free bags.

@The_ZeroLine 5 дней назад

Before long, there will be crowdfunded activist investors and takeovers using a single account as a proxy. I’m surprised it hasn’t been done yet. The GameStop thing was just a precursor.

@kdawson020279 5 дней назад

I've always been worried about that. There are instances where the right group of people with money could pull it off, but a bunch of sock puppets could create some really interesting multinational ownership issues depending on how they're distributed.

@mrvwbug4423 4 дня назад

crowdfunding investments to get controlling shares could be interesting, though it depends on the aims of whoever is running the scheme, could also be a colossal scam, there would need to be a mechanism where the crowdfunding investors are ensured that they get a piece of the profits.

@kdawson020279 3 дня назад

@@mrvwbug4423 I think you should be able to launch a company with crowdfunding; you probably shouldn't be able to negotiate a corporate buyout with kitchen table investors without some sanity checks and legal scrutiny. It's a bit of a scary concept, as a popular enough Kickstarter could threaten smaller companies' market standing not based on the merits of the product/services of the company, but on the chaos of distributed ownership.

@noname2490 4 дня назад

The problem with Elliot is what they do to companies that they take control of. What they did to Cabellas and especially they employees is terrible. And they will do the same to Southwest

@Starship007 5 дней назад

Legacy airlines have to bailed out several times, too big to fail. Unfair to competing airlines.

@AeroMaize 4 дня назад

Southwest isn’t a LCC, it’s a hybrid. The reason for the higher operating costs was because of the massive hiring the past few years in prep for more planes hitting the line…. that never came. Had Boeing delivered you would be talking about how SWA took market share from legacy airlines.

@ci7alex1 4 дня назад

People from retail will never understand how airlines operate and what makes them tick. It's not a business with any profit margin.

@hellohello-g8w 5 дней назад

Gotta love how Boeing keeps finding a way to play a major role in all these aviation problems

@RainbowLovingRainbow 4 дня назад

Have you seen all the ticket price increases and other fees that the top US airlines also did during this period? Southwest is the only airline that still has reasonable prices and better yet: 2 free bags. Elliot just wants them to be a "true" low cost airline to nickel and dime the customers for everything. If they did that they’d lose all their goodwill with their customers.

@arnaudgerard1971 4 дня назад

I wonder - if shareholder value really triggers innovation.

@MikeHarris1984 3 дня назад

I worked for a fortune 500 financial company for over 16 years and they were a massive inovator in the early years. First websites for stock trading, first to invest in data centers and big data analytics, and lots of other features and is now the largest financial firm by holdings (many Trillions of $$$$$) and they got stale in the past decade. They are trying to make changes, but instead of innovating, they push for M&A and buy other technologies and slap their name on it. Leadership for stale and complacent and are quickly falling behind with the fin tech startups. Where they are trying to use their size to force industry change that startups can compete with (pricing schedules) or buy them outright. Southwest is doing the same.

@TheLifetraveler1 4 дня назад

Leave my SW alone.

@AleksLazar 4 дня назад

“Everyone else is doing it” is not always a good business strategy. Maybe having more cheap seating instead of fewer more expensive seats has it’s own advantages, route usage flexibility, simpler operations, whatever.

@TMG2rfj 4 дня назад

We should all have learned by now from the Boeing example, that the “greed model, “which is short-term profit-focused, doesn’t work. We as a society need a culture shift away from the MBA-maximize stock value focus above all else to long-term robustness/stability and social responsibility…

@VanillaMacaron551 4 дня назад

They used to teach them about the "triple bottom line".