For Pilots Only: June 15, 2024

Connecting the Dots

Balance sheet...

This isn't the first time we've seen an airline in the crosshairs of an activist investor.

Remember the JetBlue saga not too long ago?

Well, now it's Southwest's turn, and the timing is certainly interesting.

You see, Southwest isn’t exactly struggling. In fact, they're in amazing financial shape, all things considered. Sure, they've had some hiccups with technology (who can forget that system meltdown in December?), but by and large, they're a solid operation.

So why is Elliott circling?

It's simple: they smell blood in the water.

1. A strong balance sheet - (~17 billion of unencumbered assets) - check

2. A low market cap - (~$17 billion) - check

3. Frustrated analysts - check

The aviation industry has been through the wringer lately, and investors are looking for any opportunity to capitalize on that turbulence. Even a relatively stable airline like Southwest isn't immune.

But here's the thing - while Elliott might see dollar signs, the real impact of their actions could be felt by the people who keep Southwest running day in and day out: the employees, including the pilots.

Now, I'm always on the side of what’s right for pilots.

And Elliott is doing what’s best for their investors. From my perspective, that will be at the expense of pilots and employees if they’re successful.

That’s why as someone who's spent his career in the cockpit and now dedicates his life to helping pilots navigate their careers, I can't help but worry about the potential fallout.

So, what does this mean for pilots, especially those at Southwest, or considering a move there?

The short answer is: we don't know yet. It's too early to say whether Elliott will be successful in their bid to shake up Southwest's leadership or strategy. The CEO Bob Jordan, has already come out swinging, saying he's not stepping down without a fight.

But here's what I can tell you.

When an airline is under attack like this, it creates uncertainty and uncertainty breeds chaos.

Pilots targeting Southwest, in the future, who thought they had their career trajectory mapped out might suddenly find themselves questioning everything.

Should they wait for interviews to resume?

Should they start looking elsewhere?

What if the grass isn't greener on the other side?

These are tough questions, and there are no easy answers. But if there's one thing I've learned in my years in this business, it's that the pilots who thrive are the ones who stay informed, stay flexible, and stay one step ahead.

So, if you're looking to become a Southwest pilot when hiring begins again, my advice is this:

Keep your ear to the ground. Stay on top of the news, and don't let it consume you. Focus on what you can control - your skills, your qualifications, your professionalism.

And most importantly, don't navigate these turbulent skies alone.

Network with Southwest pilots on LinkedIn and ask them what they know, what they’re hearing, and how they feel.

Surround yourself with people who understand the industry, and who can help you see the bigger picture and make strategic decisions about your career.

I’m not just here to help you polish your resume or prep for an interview (though we're pretty darn good at that, too). I’m here to be your partner and your co-pilot as you chart your course through an industry that's always changing.

Because here's the thing - the Elliott situation is just one example of how quickly things can shift in aviation.

Today it's Southwest, but tomorrow it could be another airline entirely. The key is to be ready, to be adaptable, and to have a plan.

So, whether you're a Southwest lifer, a regional pilot looking to make the leap, or a fresh-faced cadet just starting out, remember this: your career is a journey, and there will always be turbulence along the way.

But with the right tools, the right mindset, and the right people in your corner, you can weather any storm.

Keep flying high, keep learning, and keep pushing forward. And if you ever need a wingman, you know where to find me.

Fly safe,

James

Related Reading:

• Elliott's attack on Southwest in two words
• Southwest CEO will not resign, will consider input from activist investor Elliott
• What’s going on between Southwest Airlines and activist investor Elliott Management?
• Activist Investor Elliott Faces an Uphill Battle in Southwest Coup Attempt

2024 Job Fair/Industry Expos