New York State Comptroller Thomas P. DiNapoli asked Southwest Airlines CEO Robert E. Jordan how the airline will correct the problems that led to extensive flight cancellations in December.
Mr. DiNapoli was writing as the sole trustee of the $233.2 billion New York State Common Retirement Fund, Albany, which owned $17.6 million in Southwest stock as of Sept. 30.
"Clearly this crisis has resulted in profound customer dissatisfaction and is expected to generate significant costs to the company," Mr. DiNapoli wrote in a Jan. 6 letter to Mr. Jordan.
"Naturally, all of this is of considerable concern to investors, for whom Southwest's ability to attract customers and retain employees is of paramount importance," Mr. DiNapoli wrote. "The management of these basic business operations are the heart of a company's ability to provide a return to shareholders."
Mr. DiNapoli asked for "information about how Southwest is planning to correct these failures — not just in the immediate term, but for the coming years," the letter said.
A spokesman for the comptroller said in an email Tuesday to Pensions & Investments that "no further action is planned at this point, pending their response."
A Southwest spokesman wrote in an email Tuesday that the company doesn't comment on correspondence between the company and its shareholders. "However, we confirm receipt of the letter on January 6th, and Southwest is in the process of responding to the New York State Comptroller's Office," the spokesman said.
