In early 1998, I received the call which I was expecting and proceeded to Mauritius to meet the CMD. The meeting was also attended by the Dy. MD, Vinod Chidambaram. Suresh Seegobin, the Commercial Director was not invited to attend.
It was the first time that I had met the CMD and immediately sensed a little tension in the atmosphere. He started the meeting by asking “What is Sethi Associates?” I said that Sethi Associates promoted tours to Mauritius and that it was his predecessor who had asked me to start promoting such tours in addition to my job as the G.M - North America.
If that was the case, he enquired why was Air Mauritius paying Sethi Associates a commission of 3% on all sales in the USA. I told him that the commission was a part of my remuneration package and was offered to me by Harry Tiruvengadam and Suresh Seegobin in lieu of accommodation and also as an incentive to generate revenue for the airline.
The CMD stated that only GSAs were paid such a commission and since Sethi Associates was not a GSA, he wanted to stop payment of this commission. Further, MK had received a letter from Carlson Wagon-Lits offering to become the GSA for MK for the territory of USA and Canada, which would benefit MK in two ways:
- Firstly, since Carlson had offices all over the territory, MK would get tremendous coverage and earn far greater revenue.
- Secondly, this would enable MK to cut costs by closing their offices in both countries.
I was taken aback by this news as I had not heard anything of this nature from Carlson whose Head Office was in Minneapolis, MN. I asked if I could see this letter and the CMD produced it with a flourish. A quick glance told me that the offer was on the letter head of a Travel Agent in Toronto who happened to be a franchisee of Carlson. I mentioned to the CMD and the Dy. M.D. that the offer did not originate from Carlson’s Head Office but from a franchisee.
Further, the particular franchisee was an agency run by a Chinese Mauritian settled in Canada with whom our Toronto office had numerous problems regarding reporting of sales, ontime payments and cross border selling. I told them that on more that one occasion, I had to withdraw ticket stock from this agency.
I could see from the perplexed expressions on both faces that they had absolutely no clue what a franchisee was. So, I explained the relationship to them and was told that the meeting was adjourned until further notice.
On leaving the meeting, Vinod Chidambaram, the Dy. M.D. asked me to accompany him to his office where he confessed that the CMD was determined to terminate the services of all expatriates and Nari Dastur was expected in MRU the week after to negotiate the details of his departure. I was the last remaining expatriate and he (Vinod) had been directed by the CMD to proceed to the USA in June to discuss with me the closing of the USA office and termination of the staff.
I asked Vinod if I could have an opportunity to present a case to the CMD whereby I would voluntarily retire but that Management would not close the USA office. He went to see the CMD and came back with the news that the latter had left it to him (Vinod) to make the determination after his visit to the USA in June.
Before leaving MRU, I met Suresh Seegobin both in his office and at his home, where he told me that his own position in the airline was in jeopardy. The CMD was determined to see him leave voluntarily which he had refused and a stalemate had occurred. However, with the change in the political scene, he did not see a future in MK for himself.
Soon after returning from MRU, I received a call from Vinod stating that the Carlson agent in Toronto had indicated that the parent office of Carlson would like to meet with the top brass of MK and that he (Vinod) had agreed to visit Minneapolis in June and requested me to attend this meeting with him. Vinod was planning to attend a meeting in Montreal prior to the Carlson meeting and so, I should proceed directly to Minneapolis and meet him there.
Accordingly, I flew to Minneapolis and picked up Vinod at the airport and we went to Carlson’s Head Office. On the way from the airport, Vinod said that since our meeting in MRU, he had been reading books on Marketing and that he had conducted studies that revealed that the MK Head Office could handle all telephone and email enquires originating in the USA very effectively and, with little cost, conduct all transactions and in the process, eliminate the need of an office in the USA. I just listened to this “crap” and concentrated on my driving.
We met three executives of Carlson at the meeting. They had absolutely no knowledge about MK or Mauritius and appeared uncertain why the meeting had been called in the first place. Vinod stated that their Toronto franchisee had indicated to him, that the parent office of Carlson was keen to act as MK’s GSA in North America and that he had arranged this meeting for the two parties to negotiate the terms of the GSA agreement.
Carlson stated that the Toronto agent was merely one of hundreds of their franchisees and had no authority to speak on their behalf. They further, quite bluntly, informed Vinod that MK and Mauritius were of no interest to Carlson and were very sorry that Vinod had to undertake such a long journey unnecessarily. Needless to state, Vinod looked quite sheepish when we left (with his tail between his legs) for the airport where he imbibed a few large whiskies and swore to read the riot act to the Toronto agent.
We flew to Newark and after collecting my car, I drove Vinod to his hotel in NYC. He asked me to pick him up the next morning and take him to our office in New Jersey where he would let me know Management’s final decision on the future of the USA office.
The next day, I drove him to our office where he met our two staff and asked questions regarding their workload. He asked for and was shown the number of tickets issued during that month. He expressed great surprise that all tickets were manually issued and asked why we did not have automatic ticket machines. I told him that the mandarines at H.O. did not feel that our workload justified automation. He then sat down and physically counted all office coupons of tickets issued during that calendar year.
He then came to my office and asked why I had so many files on my desk and when I showed him that the files represented FITs to MRU, SEZ and South Africa. He went through some of the files at random but made no comment.
Vinod sat in the office the whole day going through files, listening to telephone calls, checking telexes and Sales Reports. He then stated that he had come to some conclusions and could I take him to my home where he would like to convey his decisions. Accordingly, we went home where during the course of a few drinks, he stated the following.
One, the USA office was unique among MK offices. For example, he never saw a single file on the desk of any Manager in any European or Far East station. Most of the traffic was generated by Tour Operators and Incentive Houses. They hardly had any individual clients.
Two, on the other hand, everyone of our passengers was individually handled by us. Tickets were manually issued and reported to MRU.
Three, he was impressed by the volume of paperwork that each FIT generated all of which was handled by me in addition to my other responsibilities.
Finally, he was now convinced that there was no way that anyone in MRU could handle U.S. originating calls and emails and he apologized for even suggesting such a proposal.
In conclusion, the U.S. office had to remain. However, he did not believe he could convince the CMD to let me stay in my current capacity, but to take care of my workload, the office could hire an additional staff at a much lower salary.
Therefore, would I consider a compromise where under I would retire on March 31, 1999 (9 months from that day) but stay on for two (2) years as a Consultant, on a retainer.
At the end of my full time tenure, I would be paid one month’s salary for each year of service.
Additionally, until further notice, he would like me to promote FITs. MK would continue to finance the costs for such promotion, including publication of brochures and advertising. I would not be paid any remuneration for this activity, but would keep any mark-ups. In other words a status quo with regard to this part of my current job.
I accepted the offer, took him out for dinner and dropped him off at his hotel. He left for MRU the next day. Within a few days of his departure, he wrote to me confirming what we had discussed.
In my next Post, I hope to complete writing about my association with Air Mauritius and also attempt to write about some shenanigans that had taken place.