After months of escalating tensions, Elliott Investment Management, a major investor in Southwest Airlines, is seeking a Dec. 10 special meeting at which shareholders can decide whether to keep or vote out Chief Executive Bob Jordan and revamp the board.
Related: Southwest Airlines' major investor is still mad
The proxy battle began in early summer when Elliott issued sharp statements about what it sees as failures in the current leadership.
Elliott nominates these directors for Southwest Air's board
On top of asking holders to vote on whether Jordan should go, Elliott nominated eight members to the board.
The candidates include former Ryanair (RYAOF) and Deputy CEO Michael Cawley, former Virgin America CEO David Cush and one-time Marriott International (MAR) President David Grissen.
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"Absent a thorough reconstitution of its board, the story of Southwest will remain one of empty promises and unfulfilled potential," Elliott Partner John Pike and Portfolio Manager Bobby Xu said in a statement.
"The nominees we have put forward today are uniquely qualified to hold the company's executive leadership accountable and ensure that the company delivers improved results."
After the Monday announcement, Southwest stock slipped a bit. At last check in Tuesday trading the shares were 1.2% higher at $30.75.
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Here's Elliott's criticism of Southwest
Elliott's biggest criticism of Jordan and other Southwest leaders centers on the airline's series of unprofitable quarters. The most recent report was a loss of $231 million, followed by an outlook cut later in the summer.
The airline took steps including introducing paid seating instead of its longtime "sit where you wish" policy and adding red-eye flights. Elliott called those measures too little, too late and responsive to pressure rather than proactive.
"This failed leadership team's announced initiatives -- obvious attempts at self-preservation -- are simply not credible," Elliott said in a statement on behalf of Pike and Xu. "Too little, too late is not a strategy. It's time for new leadership."
Southwest has defended Jordan's actions throughout the developing proxy battle. It has said repeatedly that it believes it "has the right leadership team in place to lead Southwest Airlines forward." And it has said that Elliott has remained hostile to "every effort to reach a constructive resolution."
Travelers have been balking at the changes to Southwest's longtime policies. The shareholder meeting will also shape whether many loyal customers will continue flying with the airline since industry observers expect austerity measures if Elliott succeeds in its effort to restructure the carrier's management.
In 2017, Elliott engaged in a brief proxy battle with engineering material manufacturing company Arconic. The investment firm and the company resolved their differences.