Fired airline executive collects more than $1 million after getting the ax—and keeps his platinum travel status
Losing a job is difficult enough, but it’s another cruel blow to lose the extra legroom in business class. Ousted American Airlines Chief Commercial Officer Vasu Raja won’t have to worry about that, at least not yet.
The former executive, 47, negotiated a separation deal with the airline that allows “unlimited reserved travel in any class” for Raja and his spouse or companion and children, according to the company. He’ll also get AAdvantage Executive Platinum status and entry to Admirals Club lounges at his leisure. According to the program, that means free upgrades, comped food and drink, three free checked bags, and a dedicated line for flight changes and reservations. This is all on American’s dime, a spokesperson confirmed.
Raja, who joined the company’s predecessor airline in 2004 as an analyst, will also collect $1.4 million in payments under the terms of the agreement, plus career transition services. Raja had been American’s chief commercial officer since 2022, and previously served as its chief revenue officer. His 2023 compensation was valued at $12.2 million, including yearly salary, cash bonus, stock, and perquisites.
In February 2025, the separation agreement also says Raja will be demoted to the company’s 65-point travel plan for retirees with a minimum of 10 years of active service who pay taxes and fees for their tickets but are allowed to fly for free.
Raja did not respond to a message on LinkedIn. American Airlines declined to comment further.
American announced on May 28 that Raja would depart in June and that it would search for a new chief commercial officer to replace him. CEO Robert Isom said at a conference the next day that the company needed to improve 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,” said Isom, according to Aviation Week Network.
Bloomberg reported that Raja was the subject of constructive feedback from consulting firm Bain & Co., which found the executive had overseen a new booking system that directed companies away from booking agencies and toward American’s website and app. The move resulted in cuts to the sales department and infuriated corporate clients and travel management companies, which also criticized the airline for having poor tech.
In conjunction with American’s May announcement that Raja was leaving, it cut its profit outlook for the year. The stock price is down 20% year to date.
This story was originally featured on Fortune.com
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