{
  "docId": "019dd923-622c-750b-8b9c-8bc9f8f954bc",
  "docSlug": "0c8bae70d86d",
  "documentTitle": "Southwest Airlines (LUV)",
  "authorId": "02_Elliott_Management",
  "authorName": "Elliott",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2024-06-10 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 22,
  "pageCount": 51,
  "prevPage": 21,
  "nextPage": 23,
  "slideType": "peer_benchmark",
  "function": "compare_peers",
  "density": "overcrowded",
  "nDataPoints": 4,
  "notes": "The slide uses a combination of quantitative performance data and qualitative 'villain' quotes to frame Southwest's cost management as a failure.",
  "elementsJson": [
    "headline_text",
    "subtitle_text",
    "bar_chart_vertical",
    "callout_box",
    "quote_block"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b9c-8bc9f8f954bc/22",
  "deckHref": "/decks/019dd923-622c-750b-8b9c-8bc9f8f954bc",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b9c-8bc9f8f954bc.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b9c-8bc9f8f954bc#slide-22",
  "components": [
    {
      "bbox": {
        "h": 0.12,
        "w": 0.18,
        "x": 0.31,
        "y": 0.28
      },
      "kind": "callout",
      "text": "And guided to increase further by an outsized 7-8% YoY in 2024",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1aa9a016-c025-4d6c-be50-7696e5db76b0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.65,
        "w": 0.55,
        "x": 0.04,
        "y": 0.22
      },
      "kind": "chart",
      "text": "Change in Unit Costs vs. Peers (2018 – 2023)",
      "attrs": null,
      "subkind": "bar-vertical",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c66cfbd6-b84b-4170-a501-457155e7133a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "CASMx: 30%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd952-e6ed-775b-bcaf-ba3fbbaa8b79",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.35,
        "x": 0.62,
        "y": 0.22
      },
      "kind": "quote",
      "text": "Southwest has lost the passion for low-cost, low-fare air travel.",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1b6b36e4-dde0-4ed5-ad73-296a0b5c09bc",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.35,
        "x": 0.62,
        "y": 0.6
      },
      "kind": "quote",
      "text": "Southwest is tied (with United) for the most growth, but its unit cost inflation is still worse than all others.",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3d6848c2-5eb4-413e-8378-fd032fd13cd9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.18,
        "w": 0.35,
        "x": 0.62,
        "y": 0.38
      },
      "kind": "quote",
      "text": "Costs are the real glaring issue at Southwest as they over-hired (23% more headcount vs. '19) during the recovery phase and have seen productivity decline (capacity is up 13.8% vs. '19)...",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "68a6d5b4-6cd4-40e7-a972-d032719e0d2d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.35,
        "x": 0.62,
        "y": 0.76
      },
      "kind": "quote",
      "text": "When [CEO Bob Jordan] came to the SWAPA Board of Directors meeting, he said specifically that operations wasn't his strong suit.",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f49efea5-efd3-4d57-a185-ab984b446344",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "\"Southwest has lost the passion for low-cost, low-fare air travel.\" — Ryanair CEO Michael O'Leary, March 2024; \"Costs are the real glaring issue at Southwest as they over-hired (23% more headcount vs. '19) during the recovery phase and have seen productivity decline (capacity is up 13.8% vs. '19)...\" — Melius, January 2024; \"Southwest is tied (with United) for the most growth, but its unit cost inflation is still worse than all others.\" — J.P. Morgan, July 2023; \"When [CEO Bob Jordan] came to the SWAPA Board of Directors meeting, he said specifically that operations wasn't his strong suit.\" — SWAPA President Casey Murray, August 2022",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd952-e6ed-775b-bcaf-b4cb10878db0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.9,
        "x": 0.04,
        "y": 0.95
      },
      "kind": "source-note",
      "text": "Source: Company filings, peer company filings, equity research, media reports, SWAPA. Note: Emphasis is added to all quotes. (1) American reported CASMx includes profit sharing expense. Profit sharing expense is excluded in these materials for comparability.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9d004471-b80a-48bf-a460-86063cfa879c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.55,
        "x": 0.04,
        "y": 0.12
      },
      "kind": "subtitle",
      "text": "Southwest has delivered peer-worst unit cost performance over the past five years. Poor cost control undermines Southwest's competitive positioning as a low-cost carrier",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "473ab7a2-8220-4e0d-9f26-fe7095592662",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.5,
        "x": 0.04,
        "y": 0.04
      },
      "kind": "title",
      "text": "Bottom-tier Unit Cost Performance",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "61a41072-b858-4e57-b7e8-b89b33b17fa7",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "villain-critique",
      "slug": null,
      "matchId": "7ccb294e-9311-4c81-97a1-e564a6e0d7ca",
      "evidence": "Uses quotes from competitors and stakeholders to frame the subject as failing.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 24,
      "from": 17,
      "beatId": "3bbee966-bf3b-4ee6-8a6f-1c532f219c3d",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Agitate",
      "beatSlug": "problem-agitate-solution-agitate-make-it-worse",
      "evidence": "Slides 17-24 highlight Southwest's underperformance compared to peers and the S&P 500",
      "position": 1,
      "confidence": 0.9,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}