The Vasu Raja Interview
The Vasu Raja Interview
American's former chief commercial officer shares his views on how travel agents should evolve, what airlines should learn from the New York market, and the importance of onboard product.
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Dear readers,
That last time American Airlines fired an outspoken, iconoclastic and sometimes-hard-to-work-with executive, that person ended up just fine. Scott Kirby got to keep his mansion in Dallas and still remake a competitor into the world’s largest airline, sticking it to his former employer at nearly every opportunity.
American’s most recent ousted executive — former chief commercial officer Vasu Raja — is unlikely to land in such a cushy manner. But Raja, who was asked to leave American in May after losing the big bets he made on distribution and sales, told me he intends to have a second act, perhaps at another airline or in the broader travel ecosystem.
In an interview earlier this month1 (as part of what I assume is an image rehabilitation strategy), Raja told me that he liked the Kirby comparison when I offered it. Both men love pushing big ideas and innovations, though in his post-American career, Kirby has improved at seeking consensus. Kirby loves to say that his firing was the best thing that ever happened to him, in part because it forced him to work on his weaknesses.
"I would say the exact same thing: I was fired from American Airlines and I was better off for it," Raja said. "A long time ago, he and I had this conversation about how when you bring a lot of innovation and new ideas to these big established companies like the airlines, typically your last day doesn't end with cake in the break room and a happy hour after work."
Most of you know Raja’s story. He spent roughly 20 years at American, and for the second half of his stint, he positioned himself as its biggest thinker, most aggressive talker, and sharpest dresser.2 I first got to know him when he was a network planner (2016-2019) and he teased a big expansion to India and Africa — a plan the airline never implemented. Later, as chief commercial officer, Raja embraced innovation in distribution, pushing the importance of “the internet” — his shorthand for selling tickets (and ancillary items) directly through the airline’s website instead of through an intermediary using antiquated technology and taking a commission despite adding little value. Raja also was the face of another unusual strategy; American opted to compete fiercely in just half the country, and with an inferior onboard product compared to Delta and United. As the others pushed differentiation and long-haul routes, American sold short-haul seats as a commodity.
Little went as planned. American underperformed Delta and United on margins, and Raja took the fall. While I’m sure he would like to explain himself and perhaps blame others for their roles in American’s troubles, Raja signed a lucrative exit deal that bars him from sharing specifics.3 But, hey: we are smart people. We know how former executives might take veiled shots at a former employer while not violating any agreements.
Did Raja do that here while discussing his views on travel agents, the importance of onboard product, and an airline’s optimal network (including the importance of New York)? Read carefully, and you can be the judge.