AA’s former distribution strategist gets lump payment, travel perks

Former American Airlines chief commercial officer Vasu Raja, who was dismissed when American cast aside its aggressive NDC strategy in May, will receive a seven-figure payout as well as travel privileges as part of his termination agreement. 

Per the arrangement, Raja, whose termination has been deemed effective as of June 30, will receive his base salary through Jan. 31, an amount that comes to $462,000. After Jan. 31, Raja will receive a lump payment of $969,000, bringing his total severance payout to $1.43 million. 

Through Jan. 31, Raja, his spouse and dependent children will also receive confirmed travel in any service class on American fights. Raja will have AAdvantage Executive Platinum status, which is American’s highest published status level. And he’ll have access to Admirals Club lounges. All the perks will only apply to leisure travel. 

Following Jan. 31, Raja will lose his perks but remain eligible for travel under American’s employee travel retirement program. 

Raja was the architect of American’s aggressive strategy to drive more direct bookings and move its agency bookings into NDC channels as opposed to the legacy GDSs.

American pursued the strategy for 14 months before jettisoning it in late May amid a reduction in its corporate travel business. The airline has now begun an effort to re-engage with travel agencies.

Raja earned $12.2 million in compensation during the 2023 fiscal year, including salary, bonus, stock awards and non-equity incentive payments.