Vietnam Airlines shortlists duo for review

HO CHI MINH CITY - WPP agencies Ogilvy & Mather and Bates141 are going head-to-head in a final round of pitching for the advertising account of Vietnam Airlines.

Both agencies submitted documentation on 18 June providing technical details in areas such as strategy and creative while also giving financial costings. A final round of presentations will take place before the result is made known on 30 June.

Tue T Nguyen, general manager at Bates 141 Vietnam, said: “The client is probably looking for overall strategy and good creative direction to take them further.”

“Two years ago, they bought a host of new planes and re-branded with a logo change as well. So they’re serious about expanding in the region - to go pan-Asian and take on the other airlines.”

The pitch, which began in May last year with an open tender, stalled in October when agencies objected to paying fees for the right to pitch.

In April, the client then dropped the pitch fee and invited agencies back to pitch.

The state-owned airline recently received approval from the Government to sell a 10 to 20 per cent stake to strategic foreign partners while the state retains a 70 to 80 per cent stake.

The airline is looking to serve nine million passengers this year, up 12.5 per cent from last year when it served eight million passengers and generated revenues up to 20 trillion Vietnamese dong (US$1.3 billion).

The national carrier is also facing increasing competition in its domestic market with the introduction of three new domestic carriers.

VietJet Air, which obtained its licence to operate at the end of last year, is planning to lease a 200-seater Boeing to run flights between Ho Chi Minh, Da Nang and Hanoi in December.

Air Speed Up , meanwhile, will begin servicing the same route in October.

The newest of the three, Phu Quoc Air, is finalising procedures with the country’s Civil Aviation Authority to lease smaller planes to serve shorter flights in the southern region and it will look to start operations in 2009.