British Airways is inviting advertising agencies to bid for its £60 million account for the first time in a decade and after a 23-year relationship with flamboyant British ad executives Maurice and Charles Saatchi.
British Airways said the decision was part of its normal procurement policy, but a new chief executive in waiting, a planned move to a new terminal at London's Heathrow Airport and increased ticket price pressure from rivals invited industry speculation that other factors also might have contributed.
The Saatchi brothers' firm M&C Saatchi has been asked to pitch for the account again, an airline spokesman said yesterday, adding that it is crafting a shortlist of four or five firms to join the process.
"It is British Airways' policy to review all major contracts across the business in line with their corporate procurement policy," M&C Saatchi CEO David Kershaw said. "We obviously respect this and look forward to participating in the review in order to continue our successful partnership."
British Airways, which spends about £60 million worldwide on advertising each year, hopes to have a new contract in place by autumn, the spokeswoman said. "Really what we're looking for is an agency that's global and somebody that understands our business," she said.
The ad account for Europe's second largest airline is one of the most coveted in Britain. The Saatchi brothers, whose former agency Saatchi & Saatchi is now part of France's Publicis, won the account in 1982 when the airline was owned by the government.
The agency developed the famous "World's Favourite Airline" slogan after it discovered British Airways carried more international passengers than any other airline. The airline was privatised in 1987 and the slogan was discontinued in 1999.
"We have enjoyed a long and successful relationship with M&C Saatchi," British Airways commercial director Martin George said in a statement.
"However, as the airline continues to face the challenges of an increasingly competitive market, we are required to review all our major contracts across the business in line with our corporate procurement policy," he added.
Former Aer Lingus CEO Willie Walsh is set to take over at British Airways from Rod Eddington at the end of September.
Publicis agency ZenithOptimedia will continue to handle media buying and planning for British Airways.
The Saatchis lost control of the firm they founded in 1970 following an acquisition binge and a failed attempt to buy Midland, one of Britain's largest banks. Their ability to convince British Airways and a handful of other top clients to come with them was key to their starting a rival agency in 1995.