Air NZ not absolutely committed to Kiwi ads

Friday 27th July 2001

By Nick Smith

Another expensive piece of Kiwi property could end up in foreign hands with the entire $80 million Air New Zealand Australasian advertising account up for grabs.

A decision from Air New Zealand is due within weeks for what is in dollar terms the biggest local advertising account move in years.

Nobody is talking - on the record, that is - but local marketers and advertisers could miss out as Air New Zealand puts its business, including Ansett Australia, up for grabs.

Ominously, the meetings with advertising agencies were held in Melbourne, reflecting the general trend of strategic business control moving from New Zealand across the Tasman.

The advertising industry has already been hit hard by the loss of strategic control to the Aussies, which has had a flow- on effect to all media and the economy.

TVNZ sales general manager Jeff Latch has told The National Business Review that strategic control movement across the Tasman had affected all media and driven down revenue at the state-owned broadcaster.

Managing directors at agencies Colenso BBDO, McCarthy Moon, McCann Erickson, J Walter Thompson and Publicis Rainger have publicly cited Australian strategic control of advertising budgets as a blight on not only the industry but also the economy.

Air New Zealand is desperate to regain credibility - presumably partly through its planned $80 million global branding campaign - after a string of financial and public relations disasters.

It is still waiting on government approval for Singapore Airlines to boost its stake in the company, which might affect the agency decision, but just as influential will be Air New Zealand's ownership of Ansett Australia.

Aussie agency George Patterson Bates acts for Ansett and has earned kudos for its "Absolutely" service initiative campaign on behalf of the airline.

Given the preference for the chief executive Gary Toomey-fronted Australian-made commercials, cynics ask how the local agencies can criticise the marketing approach.

Indeed, on the back of the Aussie success, George Patterson Bates' local company Generator Bates picked up bits of Air New Zealand's advertising business.

Industry punters pick George Patterson Bates as the favourite in this race, which also includes incumbent Colenso BBDO, Generator Bates, Saatchi & Saatchi, DDB, Lowe Lintas, Young & Rubicam, WRC and Clemenger among a small group of Australian contenders.

In total, 11 agencies have pitched for the Air NZ business, an extraordinarily high number with four or five the average, but several are media shops.

Their presence suggests Air NZ is retaining the option of splitting up the business, with creative advertising handled by one agency and media work by a specialist boutique shop.

All of the agency presentations have been made and Air NZ is refusing all comment, save to say a decision is expected soon.

Industry sources say the airline will make its announcement within a fortnight.

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