Shedding a job is tough sufficient, but it surely’s one other merciless blow to lose the additional legroom in enterprise class. Ousted American Airways Chief Business Officer Vasu Raja received’t have to fret about that, no less than not but.
The previous government, 47, negotiated a separation deal with the airline that enables “unlimited reserved travel in any class” for Raja and his partner or companion and youngsters, in line with the corporate. He’ll additionally get AAdvantage Government Platinum standing and entry to Admirals Membership lounges at his leisure. In keeping with this system, meaning free upgrades, comped foods and drinks, three free checked baggage, and a devoted line for flight adjustments and reservations. That is all on American’s dime, a spokesperson confirmed.
Raja, who joined the corporate’s predecessor airline in 2004 as an analyst, may also gather $1.4 million in funds below the phrases of the settlement, plus profession transition providers. Raja had been American’s chief business officer since 2022, and beforehand served as its chief income officer. His 2023 compensation was valued at $12.2 million, together with yearly wage, money bonus, inventory, and perquisites.
In February 2025, the separation settlement additionally says Raja will probably be demoted to the corporate’s 65-point journey plan for retirees with a minimal of 10 years of energetic service who pay taxes and charges for his or her tickets however are allowed to fly at no cost.
Raja didn’t reply to a message on LinkedIn. American Airways declined to remark additional.
American introduced on Could 28 that Raja would depart in June and that it could seek for a brand new chief business officer to switch him. CEO Robert Isom mentioned at a convention the following day that the corporate wanted to enhance on executing its long-range plans and attending to {the marketplace}.
“I admire his creative thinking, his passion. He’s an innovator, a disruptor. He’s a good friend. But sometimes we need a reset, and in this case, we do,” mentioned Isom, in line with Aviation Week Community.
Bloomberg reported that Raja was the topic of constructive suggestions from consulting agency Bain & Co., which discovered the manager had overseen a brand new reserving system that directed corporations away from reserving businesses and towards American’s web site and app. The transfer resulted in cuts to the gross sales division and infuriated company purchasers and journey administration corporations, which additionally criticized the airline for having poor tech.
Along side American’s Could announcement that Raja was leaving, it lower its revenue outlook for the yr. The inventory value is down 20% yr up to now.
