American Airlines CEO Robert Isom fired the airline's Chief Commercial Officer Vasu Raja after a report from consulting firm Bain & Co revealed issues with Raja's "modern retailing" strategy. The "modern retailing" strategy sought to move customers away from booking through travel agencies and towards direct bookings on American's website and app. American cut back its sales department, as part of this strategy. The Bain report commissioned by American highlighted concerns from corporate travel advisers about the impact of the strategic shift. American also cut its profit outlook when announcing Raja's departure, causing its stock to drop 14%, its largest drop in nearly four years.
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00:00 It's Benzinga and here's what's on the block.
00:02 American Airlines CEO Robert Isom fired the airline's chief commercial officer,
00:06 Vazu Raja, after a report from consulting firm Bain & Co. revealed issues with Raja's
00:11 modern retailing strategy. The modern retailing strategy sought to move customers away from
00:16 booking through travel agencies and toward direct bookings on American's website and app.
00:21 American cut back its sales department as part of this strategy.
00:24 The Bain report commissioned by American highlighted concerns from corporate travel advisors
00:29 about the impact of the strategic shift. American also cut its profit outlook when
00:33 announcing Raja's departure, causing its stock to drop 14 percent,
00:37 its largest drop in nearly four years. For all things money, visit Benzinga.com.