Elliott Investment Management, a well-known activist hedge fund with $70 billion in assets, has successfully influenced Southwest Airlines to enter into negotiations. This indicates a significant change in Southwest's position.

Instead of engaging in a proxy fight, Southwest chose to concede after Elliott called for a special shareholder meeting. This demonstrates the increasing influence of hedge funds like Elliott in the airline industry.

As a result, Southwest Airlines has agreed to many of Elliott's demands, further establishing the hedge fund's reputation as a powerful player in corporate activism. This highlights the challenges that companies face as they navigate the demands of influential activist investors in a competitive market.