A Southwest investor asked the board to fire its CEO over the airline's struggles. Now he wants to fire the board.

Elliott Investment Management plans to put forward a slate of candidates for Southwest Airlines Co.'s board has stepped up pressure from activist investors calling for radical changes at the struggling carrier, according to a person familiar with the matter.

Elliott will appoint up to 10 directors and call a special meeting for investors to vote on the nominations, said the person, who asked not to be identified because the plans are confidential. The activist must raise 10% of Southwest's shares before he can seek the meeting, which he expects to happen before the airline's annual meeting next spring.

The start of the proxy fight marks a major escalation for Elliott after it took a large stake in Southwest earlier this year. The investor has demanded major changes, including the resignation of CEO Bob Jordan and Chairman Gary Kelly. It has criticized the carrier for refusing to embrace changes that have spread across the industry, causing its shares to plummet in recent years.

A Southwest spokeswoman said the company had not heard from Elliott and was not aware of its plans.

Southwest shares were up 1% at 6:38 p.m. after-hours trading in New York. The stock had fallen 12% this year through Tuesday's close.

The airline announced radical changes into its business model last month, including assigned seating, a new premium option and plans for overnight flights — moves the company sees as boosting sales and increasing its appeal. While Southwest said earlier this year it was considering changes, it has faced increased pressure from Elliott to overhaul inefficient operations.

Southwest has struggled this year due to slowing growth and smaller-than-expected aircraft deliveries from Boeing Co. and a number of flight safety incidents that worked Federal Aviation Administration survey The strain on the business was underscored by the company's recent guidance, which showed revenue and expenses in the current quarter were below Wall Street estimates.

Elliott criticized Jordan and Kelly, who was CEO before Jordan, for poor execution and a “stubborn reluctance to evolve the company’s strategy.” They are “failing to modernize Southwest,” the activist said. It also proposes reorganizing the board, criticizing the current members’ lack of airline experience and independence.

Southwest last month appointed an airline industry veteran to its board to help address other issues raised by Elliott. The carrier also “poison pill” The shareholder protection plan is designed to prevent the activist from gaining a larger stake.

The Wall Street Journal Elliott's plans were previously reported.

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