Tag Archives for vasu raja.
Vasu Raja has been giving interviews after being let go as American Airlines Chief Commercial Officer. American’s financial results have been poor, and at some level either he needed to go, or the CEO did. It’s not surprising which decision got made.
Usually complex large supplier relationships are handled diplomatically. Not so with Vasu Raja.
At the end of May, American Airlines announced the departure of Chief Commercial Officer Vasu Raja, and downgraded earnings projections, as business and managed travel revenue dropped off amidst a cost-cutting campaign that pushed those customers and resellers to move their interactions with the airline online.
He’s still being paid through January and isn’t going to speak too much out of turn. But he’s giving his first interviews since the split.
Vasu Raja staked out bold positions. He felt too strongly that the airline’s schedule was its product – rather than its service and experience. He architected their Sun Belt focus and shift away from managed travel. And he elevated the centrality of the carrier’s loyalty program as part of its core business strategy and not just as a financial instrument.
Vasu Raja is out at American Airlines. He had a bold view of the world of aviation, and wasn’t afraid to break things. But at large public companies, you can only do that if you succeed.
Bloomberg is reporting that Vasu Raja was let go by American Airlines because of a Bain consulting report saying that corporate customers and travel management companies were unhappy with American’s new systems that hey were supposed to be using. My understanding is that this is inaccurate.
Just a week ago the airline went around on the record saying “Vasu’s not leaving.”
However today American Airlines announced that Raja “will depart the airline in June.” There was no quote from Raja. There was no quote from CEO Robert Isom. Nothing about the tremendous value he’s added to the company. He’s just out.
American Airlines held its Investor Day on Monday afternoon. There was a surprising amount about the AAdvantage program in the discussion, in addition to what you’d expect about airline strategy.
We can expect to see some changes in how miles are awarded (more miles), new redemption options, and better redemptions for members with status. And there’s an explicit commitment not just to defend the value of their miles, but to ensure their currency provides greater value per mile than competitor airlines and even banks do.
American Airlines announced changes for the 2024 member year that are generally positive. Chief Commercial Officer Vasu Raja had previewed broad changes in the airline’s employee podcast – but those weren’t announced.
AAdvantage reports up to Raja, and the changes he talked about are still coming.
Vasu Raja, American Airlines Chief Commercial Officer, appeared on the airline’s podcast for employees and laid out what he sees as their strengths and plans they’ll be pushing forward on.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
