Three senior leaders at American Airlines will reportedly leave the carrier as a result of the restructuring of its global sales team. The shakeup impacts the airline's US operations and includes the departures of other employees.

As the COVID-19 pandemic has changed corporate travel, American sent a memo last month to its employees that said it plans to make changes to better align its operation with the new normal, which includes reductions across its team. The announcement comes as the carrier's CFO said its debt-cutting plan is back on track.

"Reductions across the team"

According to the internal memo obtained by Skift, American's Vice President of Global Sales, Thomas Rajan, said the sales team will be more focused on the needs of its customers.

“I want to let you know that we are going to be a more streamlined sales team going forward, doing much more focused and deliberate work in areas where customers need us, and operating with greater efficiency and effectiveness.”

American Airlines Plane Flying by ATC Tower Charlotte Douglas Airport
Photo: Charlotte Douglas International Airport

Rajan also confirmed that layoffs would occur at the airline as a result.

"To be upfront with you, that will mean reductions across the team," he said. "We're continuously evaluating how best to serve our customers' evolving preferences. For example, a big portion of them have shown us they want to interact directly with American. Others have needs to interact with us through intermediaries."

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Among those leaving

The Fort Worth-based airline said three leaders will transition out of their roles due to the restructuring: Michael Albers, the Interim Managing Director of central, southwest divisions and Canada sales; Louis de Joux, the Managing Director of Leisure and OTA (Online Travel Agency) sales; and Shane Hodges, Managing Director of sales in the western division and Asia-Pacific.

de Joux, who has been with American for nine years, will leave the carrier at the end of the month.

"I would like to thank my incredible team, amazing customers, as well as the Travel Advisor community which truly is the heart of our great industry," he wrote in a LinkedIn post. "I am really excited to get on a long vacation and look forward to exploring new opportunities in the spring."

American Airlines Boeing 777-323(ER) N732AN (1)
Photo: Vincenzo Pace I Simple Flying

Two other leaders have also retired from their roles. Jim Carter, the airline's Managing Director of the Eastern Division, announced his retirement last month, and Chief Customer Officer Alison Taylor retired in January. Simple Flying contacted American for comment on Thursday but did not hear back.

A different working dynamic

The shift accurately reflects the ongoing challenge for businesses as they try to balance remote work with employees returning to the office. Vasu Raja, American's Chief Commercial Officer, said 25% of the airline's fourth-quarter revenue came from business trips, which was down about 10%.

"For so many companies, if you're struggling to bring people back to the office, it's hard to compel them to go do a day trip to Chicago or New York," Raja said to The Business Journals.

Simultaneously, blended trips, which are leisure and business travel combined, now reportedly amount to 45% of the carrier's revenue.

American informed its corporate partners of the change, saying the reorganization of its North American-based sales team is intended to be able to quickly adapt to the evolving marketplace, according to Skift.

"This structure also allows us to deliver simpler solutions to intermediaries as well as provide a heightened focus for our customers' entire travel ecosystem," the airline said. "As a result of these changes, we're also evaluating our account management structure and will have more information to share in the coming weeks."

Sources: Skift, The Business Journals

  • American Airlines Tile
    American Airlines
    IATA/ICAO Code:
    AA/AAL
    Airline Type:
    Full Service Carrier
    Hub(s):
    Charlotte Douglas International Airport, Chicago O'Hare International Airport, Dallas/Fort Worth International Airport, Los Angeles International Airport, Miami International Airport, New York JFK Airport, LaGuardia Airport, Philadelphia International Airport, Phoenix Sky Harbor International Airport
    Year Founded:
    1926
    Alliance:
    oneworld
    CEO:
    Robert Isom
    Country:
    United States
    Airline Group:
    American Airlines Group
    Region:
    North America
    Loyalty Program:
    AAdvantage