For many of us, the idea of losing a job is a daunting prospect. But for Vasu Raja, the recently ousted Chief Commercial Officer of American Airlines, job loss comes with a silver lining. Raja has secured a separation deal that ensures he won’t have to bid farewell to the luxuries of business class travel anytime soon.
Under the terms of the deal, Raja and his family can take advantage of “unlimited reserved travel in any class”. This isn’t merely a perk; it’s a ticket to free upgrades, meals, drinks, and the privilege of three free checked bags. Raja will also maintain his AAdvantage Executive Platinum status and have unrestricted access to Admirals Club lounges. All of these benefits, according to a company spokesperson, are being provided at the expense of American Airlines.
Raja, who joined the airline’s predecessor back in 2004 as an analyst, will also receive $1.4 million in separation payments, in addition to career transition services. In his time at American Airlines, Raja rose through the ranks to become the Chief Commercial Officer, after previously serving as the Chief Revenue Officer. His compensation package for 2023 was valued at an impressive $12.2 million, inclusive of salary, cash bonus, stock, and other benefits.
Raja’s Future with American Airlines
In February 2025, Raja is set to transition to the company’s 65-point travel plan for retirees. This plan, designed for those with a minimum of 10 years of active service, requires retirees to pay taxes and fees for their tickets but allows them to fly for free.
American Airlines announced Raja‘s impending departure on May 28, with plans to seek a new Chief Commercial Officer to fill his shoes. CEO Robert Isom acknowledged the need for the company to enhance its execution of long-range plans and pay greater attention 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,” said Isom, as reported by the Aviation Week Network.
Controversy Surrounding Raja’s Departure
It has been reported that Raja‘s departure follows constructive feedback from consulting firm Bain & Co. The firm found that Raja had overseen a new booking system that encouraged companies to book directly through American Airlines‘ website and app, rather than through booking agencies. This move led to cuts in the sales department and sparked outrage amongst corporate clients and travel management companies, who criticized the airline’s technology infrastructure.
This controversy, coupled with Raja‘s departure, led American Airlines to reduce its profit outlook for the year. As a result, the company’s stock price has fallen by 20% to date.
