Ad agencies in Virgin Australia holding pattern

Paige Murphy
By Paige Murphy | 22 April 2020
 

Virgin Australia's collapse has left the brand at a standstill with its advertising agency partners until its future is clearer.

The airline works with Omnicom-owned agencies DDB Sydney and PHD.

DDB has worked with the airline since 2017.

Nielsen Ad Intel is reporting $14 million in estimated media spend for Virgin over the 12 months to the end of March. 

At the end of last year, the airline had launched a new brand campaign Up, Up and Toupee which was created by DDB Sydney. The work was part of Virgin's new brand positioning 'Feel good flying'.

PHD won the media account for Virgin Australia last year after securing it from Carat.

Noel Gate was then appointed as group business director to lead the Virgin Australia account at PHD.

Both PHD and DDB declined to comment on the impacts that Virgin's collapse has had on them.

Industry insiders say that agency staff working on the account may be redeployed, at least as a temporary measure.

The airline went into voluntary administration this week after making several public pleas for financial assistance from state and federal governments to help it through the COVID-19 crisis.

It launched a campaign, taking aim at its main competitor Qantas, to highlight the importance of its survival so that there isn't a "monopoly in Australian skies" and asking regulators to "keep the air fair".

 

Just three weeks ago, the airline also had to stand down people in its marketing team as the crisis continued to impact its business.

Virgin Australia head of brand, consumer and media Rapthi Thanapalasingam shared the news on LinkedIn:

"Today was the toughest day I've had at Virgin Australia.....maybe even my career, having had to stand down so many team members for a couple of months. But I want to use this opportunity to reach out to my network, especially my marketing network to see if any of you need some rockstars who can work with you on some short term projects, full time, part time, or casual - then please DM me!

"Skills range in brand marketing, campaign management, partnership marketing, media planning and design. Again, please DM me, much appreciated!"

Virgin Australia group CEO Paul Scurrah says the airline contributes around $11 billion to the economy and the loss of the airline would impact the nation's access to competitive air travel.

“Our decision today is about securing the future of the Virgin Australia Group and emerging on the other side of the COVID-19 crisis," Scurrah says.

“Australia needs a second airline and we are determined to keep flying. Virgin Australia will play a vital role in getting the Australian economy back on its feet after the COVID-19 pandemic by ensuring the country has access to competitive and high-quality air travel.”

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