The departure of Vasu Raja from American Airlines came with a significant severance package. As per the termination agreement, Raja will be receiving a substantial seven-figure payout, along with some travel privileges. His termination is set to be effective from June 30, and he will continue to receive his base salary until Jan. 31, amounting to $462,000. Following this period, Raja will be given a lump sum payment of $969,000, totaling his severance package at $1.43 million.
Until Jan. 31, Raja, along with his spouse and dependent children, will have access to confirmed travel in any service class on American flights. Additionally, he will hold AAdvantage Executive Platinum status, the highest status level at American, and will also be able to enjoy the amenities at Admirals Club lounges. However, all these privileges will only apply to leisure travel. After Jan. 31, Raja will lose these perks but will remain eligible for travel under American’s employee travel retirement program.
Vasu Raja was known for being the mastermind behind American Airlines’ aggressive strategy to promote direct bookings and shift towards NDC distribution channels rather than traditional GDSs. This strategy was actively pursued for 14 months before being abandoned in May due to a decline in corporate travel business. The airline is now focused on re-engaging with travel agencies to adapt to the changing landscape of the industry.
The departure of Vasu Raja from American Airlines marks the end of an era characterized by bold and innovative strategies in the air travel industry. While his tenure had its highs and lows, Raja’s legacy will be remembered for pushing boundaries and challenging the status quo. As American Airlines moves forward, it will be interesting to see how the airline navigates the evolving demands of the market without the leadership of Vasu Raja.