British Airways is to make huge cuts to its £15 million
advertising spend in the wake of the terrorist attacks in the US.
The airline said that it is reviewing its advertising spend but has yet
to decide how much it is likely to cut from its budget. The move is a
blow to M&C Saatchi, which is already facing the possibility of having
to make redundancies, having put its staff on notice last week.
BA has also culled its direct marketing and design roster, terminating
its contracts with Carlson and Claydon Heeley Jones Mason. Tullo
Marshall Warren, the third direct marketing agency on the BA roster,
will stay in place as lead agency and will be supported by Black
Insiders estimate that BA spends £25 million below the line.
Carlson handled most of BA's customer loyalty work, including its
Executive Club, and Claydon Heeley Jones Mason worked across BA areas
including Club World and Business.
It is likely that BA will put a hold on all brand advertising in the
short term with some promotional press advertising continuing to
The majority of its direct marketing will be moved in-house over the
coming months, with one source suggesting that below-the-line spend will
be cut to between £4 million and £5 million.
A BA spokeswoman said: "We are in the process of reviewing all our
We have terminated contracts with Carlson and Claydon Heeley and will
have one lead direct marketing agency supported by Black Sun while we
build our in-house capabilities.
"We are reviewing the work we do with M&C Saatchi but there is not
likely to be a repitch," she added.
BA recently announced 7,000 job losses and withdrew 20 aircraft from its
fleet as it announced its intention to cut flights by 10 per cent in the
wake of the events in the US. BA is also facing a review of its night
flights at Heathrow by the European Court of Human Rights.