Activist hedge fund firm Elliott Management is intensifying its challenge to the management of Southwest Airlines by launching a proxy battle aimed at securing 10 of the 15 board seats at the airline, according to a report by ABC News.PARA_BREAK_SENTINEL_9f8e7d6cIn a statement released late Tuesday, Elliott described its slate of director nominees as a crucial step towards implementing necessary changes at Southwest. The hedge fund believes these changes are urgent given the airline’s underperformance compared to its rivals.PARA_BREAK_SENTINEL_9f8e7d6cSouthwest responded on Wednesday, noting that it has made multiple efforts to engage with Elliott to address the firm's concerns, but these attempts have been unsuccessful.PARA_BREAK_SENTINEL_9f8e7d6c“Despite agreeing to meet with us in early September to discuss potential resolutions, including board refreshment and governance improvements, Elliott chose instead to publicly announce their intention to replace a majority of our board,” said a Southwest spokesperson.PARA_BREAK_SENTINEL_9f8e7d6cThe airline’s shares have fallen 12% this year, while the S&P 500 has risen 14%. Southwest’s stock performance has lagged behind competitors such as Delta Air Lines and United Airlines.PARA_BREAK_SENTINEL_9f8e7d6cElliott, meanwhile, has criticised the current leadership, including CEO Robert Jordan and Chairman Gary Kelly, for failing to keep pace with industry changes.PARA_BREAK_SENTINEL_9f8e7d6cThe hedge fund's proposed board slate includes former CEOs of Air Canada, WestJet and Virgin America, as well as senior executives from JetBlue, Ryanair and a former US Transportation Department official.