Southwest Airlines struck a truce with Elliott Investment Management, giving the activist a significant presence on its board but not the majority control the hedge fund initially sought. The settlement announced Thursday deflects a potentially rancorous proxy fight and ends the acrimonious four-month battle over whether Southwest’s management is capable of pulling the airline out of a funk.

Southwest Airlines has given in to demands from Elliott Investment Management after months of an ongoing battle and agreed to restructure board leadership in a new settlement.

The carrier’s concessions will avert a proxy fight in exchange for naming six new directors. Notably, Southwest CEO Bob Jordan will keep his job.

Southwest Airlines is near a deal with activist Elliott which would stave off a potential proxy fight in exchange for sizable board representation.

Elliott Investment Management and Southwest Airlines are close to reaching a settlement agreement that would avert a proxy battle over control of the airline's board, Bloomberg News reported on Wednesday,

Southwest Airlines Co. (NYSE: LUV) announced early Oct. 24 an agreement with activist investor Elliott Investment Management that will reshape the Dallas-based airline's board and avert a proxy fight.

After more than four months of waging a public battle with activist investor Elliott Investment Management, low-cost pioneer Southwest Airlines. may

Activist investor Elliott Investment Management and Southwest Airlines are in talks to settle their months-long battle, according to reports Sunday, with a potential deal that would give Elliott representation on the budget airline’s board.

This could end a months-long struggle between the Dallas-based airline and the West Palm Beach-based hedge fund.