Jet Airways has appointed Interpublic Group to handle its US$30 million global creative account, as the Indian carrier puts its ambitious expansion plans on hold because of soaring oil prices.
The development ends M&C Saatchi’s hold on the business, which it won early last year. A new IPG unit, called Altitude, has been formed to lead the business, operating within McCann Worldgroup India. The account covers Jet Airways and its low-cost sibling, Jet Lite.
In the 18 months that M&C Saatchi has serviced the business, Jet has launched a slew of new international flights and acquired an Indian rline, doubling its marketing spend. However, chief commercial officer Sudheer Raghavan said “communication needs have changed rapidly following our international expansion”. While Jet is expected to freeze expansion until the end of next year, it does not intend to slash routes or cancel aircraft orders. The news comes amid forecasts that the airline will report heavy losses for its 2008 fiscal year.
Jet Airways SVP of alliances, Gaurang Shetty, said the onus is on airlines to “be much smarter in the way [they] spend money”. A source familiar with the airline said Jet should be looking to raise digital investment, which accounts for a single-digit percentage of total adspend. “Digital should be 20 per cent,” said the source.
“What they should do while slowing down is start moving dollars into digital, but their understanding of digital is quite rudimentary.”
