BA may sack M&C Saatchi as advert agency

British Airways is considering sacking M&C Saatchi as its advertising agency, ending a decades-old relationship with Maurice and Charles Saatchi that changed the face of UK business.

BA said it would be conducting a review of the creative component of its £60 million (€88.53 million) global advertising effort, which would involve M&C Saatchi and up to three other competitors.

The decision comes only months before BA's chief executive, Rod Eddington, is set to give way to his designated successor, former Aer Lingus chief executive Willie Walsh. Such reviews often occur under new managements.

However, news of the exercise sent shock waves through the UK advertising world - both because of the status of the assignment and the history between BA and the Saatchi brothers, who first started working for the airline in the early 1980s.

Their work established the airline as a global brand and cemented their reputations as workers of marketing wonders.

The Saatchis dubbed it "the world's favourite airline" in 1983, basing their claim on the cunning observation that while other airlines carried more people, none of BA's competitors transported more international passengers.

After being forced out of their original company, Saatchi & Saatchi, the brothers lured away the BA account in 1995 for their new flagship, M&C Saatchi.

Charles Saatchi remains a shareholder in the UK-listed company but plays no part in its operations. Maurice Saatchi is an executive director but has engaged in outside activities, including service as chairman of the Conservative Party.

The debate in UK advertising circles was whether BA had lost faith in the Saatchis or was trying to motivate them. In 2002, BA conducted a review of its corporate and financial communications and retained its incumbent adviser, Brunswick.

BA said the review was part of "a greater focus on corporate procurement policy", an indication it might be trying to cut costs.

But it also linked the review to its "move into a phase of product development and investment", possibly signalling a desire for a different kind of agency.

David Kershaw, M&C chief executive, noted it was airline policy "to review all major contracts across the business in line with their corporate procurement policy". He said M&C looked forward "to participating in the review in order to continue our successful partnership".

A BA spokeswoman said the airline hoped to come up with a shortlist of candidates this summer and make a final selection by the autumn. - (Financial Times Service)