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.
