On May 28, American Airlines announced that Chief Commercial Officer Vasu Raja would be exiting in June. His employment officially ended on June 30.
Vasu Raja was known for his bold positions. He strongly believed that the airline’s schedule was its product, rather than its service and experience. He was instrumental in architecting their Sun Belt focus and shifting away from managed travel. Additionally, he elevated the centrality of the carrier’s loyalty program as part of its core business strategy, not just as a financial instrument.
The primary reason for his dismissal was the declining business travel market share. Otherwise, it is possible that the airline’s CEO might have faced consequences. In a Friday evening news release through an SEC filing, American Airlines disclosed details about his severance package, which amounts to approximately $1.43 million.