{"id":225674,"date":"2024-05-30T01:01:53","date_gmt":"2024-05-30T01:01:53","guid":{"rendered":"https:\/\/michigandigitalnews.com\/index.php\/2024\/05\/30\/american-airlines-ceo-fired-top-exec-after-controversial-modern-retailing-strategy-infuriated-corporate-clients\/"},"modified":"2025-06-25T17:18:28","modified_gmt":"2025-06-25T17:18:28","slug":"american-airlines-ceo-fired-top-exec-after-controversial-modern-retailing-strategy-infuriated-corporate-clients","status":"publish","type":"post","link":"https:\/\/michigandigitalnews.com\/index.php\/2024\/05\/30\/american-airlines-ceo-fired-top-exec-after-controversial-modern-retailing-strategy-infuriated-corporate-clients\/","title":{"rendered":"American Airlines CEO fired top exec after controversial &#8216;modern retailing&#8217; strategy infuriated corporate clients"},"content":{"rendered":"<p> [ad_1]<br \/>\n<br \/><img decoding=\"async\" src=\"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2024\/05\/GettyImages-1676723511-e1717029515320.jpg?w=2048\" \/><\/p>\n<div data-cy=\"article-content\">\n<p><a href=\"https:\/\/fortune.com\/company\/american-airlines-group\/\" target=\"_blank\" aria-label=\"Go to https:\/\/fortune.com\/company\/american-airlines-group\/\" class=\"sc-65eb153f-0 gxOXYL\" rel=\"noopener\">American Airlines Group<\/a> Inc. Chief Executive Officer Robert Isom dismissed the carrier\u2019s commercial chief in the wake of a critical report from Bain &amp; Co. about a controversial new marketing system that alienated corporate clients, according to a person familiar with the matter.\u00a0<\/p>\n<div class=\"paywall\">\n<p>Isom was prompted to fire Vasu Raja within the past few days after the report, which American commissioned from Bain. It revealed concerns by corporate travel advisers over a recent shift in the airline\u2019s sales strategy, which contributed to lagging revenue over the past few quarters, the person said Wednesday.<\/p>\n<p>Raja could not be reached for comment. American announced his departure late Tuesday, and also cut its profit outlook, sending its shares down 14% the next day \u2014 the biggest drop in nearly four years.<\/p>\n<p>The new system the CCO had overseen, dubbed \u00a0\u201cmodern retailing,\u201d sought to push customers away from booking agencies in favor of buying directly through American. The airline\u2019s sales department was cut back as part of the switch.\u00a0<\/p>\n<p>But the shift angered some corporate clients and travel management firms, and Raja acknowledged recently that its growth in managed corporate travel volumes was trailing that at rivals <a href=\"https:\/\/fortune.com\/company\/united-continental-holdings\/\" target=\"_blank\" aria-label=\"Go to https:\/\/fortune.com\/company\/united-continental-holdings\/\" class=\"sc-65eb153f-0 gxOXYL\" rel=\"noopener\">United Airlines<\/a> Holdings Inc. and <a href=\"https:\/\/fortune.com\/company\/delta-air-lines\/\" target=\"_blank\" aria-label=\"Go to https:\/\/fortune.com\/company\/delta-air-lines\/\" class=\"sc-65eb153f-0 gxOXYL\" rel=\"noopener\">Delta Air Lines<\/a> Inc.<\/p>\n<\/div>\n<div class=\"sc-83cd12c6-0 gjLFAy article\" data-cy=\"subscriptionPlea\">Subscribe to the CFO Daily newsletter to keep up with the trends, issues, and executives shaping corporate finance. <a href=\"https:\/\/www.fortune.com\/newsletters\/cfodaily?&amp;itm_source=fortune&amp;itm_medium=article_tout&amp;itm_campaign=cfo_daily\" target=\"_self\" aria-label=\"Go to https:\/\/www.fortune.com\/newsletters\/cfodaily?&amp;itm_source=fortune&amp;itm_medium=article_tout&amp;itm_campaign=cfo_daily\" class=\"sc-65eb153f-0 gxOXYL\" rel=\"noopener\">Sign up<\/a> for free.<\/div>\n<\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/fortune.com\/2024\/05\/29\/american-airlines-ceo-fired-top-exec-modern-retailing-direct-consumer\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] American Airlines Group Inc. Chief Executive Officer Robert Isom dismissed the carrier\u2019s commercial chief in the wake of a critical report from Bain &amp;<\/p>\n","protected":false},"author":1,"featured_media":225675,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[149],"tags":[],"_links":{"self":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/225674"}],"collection":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/comments?post=225674"}],"version-history":[{"count":0,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/225674\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media\/225675"}],"wp:attachment":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media?parent=225674"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/categories?post=225674"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/tags?post=225674"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}