An activist named Elliott plans to initiate a proxy battle at Southwest Airlines in order to nominate up to 10 directors.

• Southwest Airlines is facing a proxy fight from Elliott, who plans to nominate up to 10 directors to its 15-member board.
• Elliott has an 11% stake in the airline through stock and derivatives.
• To call a special meeting, the activist must possess 10% of the company's common stock.

A proxy fight is being planned by activist investor Elliott Management at , with the intention of nominating up to 10 directors to the company's 15-member board, according to a source.

Instead of waiting for the annual shareholder meeting, Elliott intends to hold a special meeting. The last Southwest shareholder meeting took place in May.

Although only 7% of the company is in common stock, the activist has already accumulated an economic interest of approximately 11%. To call a special meeting under Southwest's bylaws, Elliott must own at least 10% of the company, which they are likely to achieve soon.

The 10-person slate will not include any Elliott employees, the person said.

In over 50 years of flying, Southwest has recently made the largest changes to its business model, including the abolition of its open seating model and the introduction of premium seating with additional legroom.

For years, Southwest had been studying changes, but an oversupplied U.S. market has driven down fares, compelling the carrier and its rivals to adopt new business models to increase revenue. As an example, budget carrier Spirit Airlines recently announced it would offer a business class with bigger seats, complimentary Wi-Fi, snacks, drinks, and checked luggage.

The airline's executives will provide a more detailed discussion of its strategy during an investor day next month.

The Wall Street Journal earlier reported news of Elliott's plans, but a representative for Southwest did not immediately respond to a request for comment.

CNBC's Leslie Joseph's contributed to this report.

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