Delta shifting ad work in cost-cutting move

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Delta shifting ad work in cost-cutting move


ATLANTA (AP) =97 In another cost-cutting move, Delta Air Lines is shifting=
=20
much of its advertising and marketing services to an in-house team. The=20
carrier said Wednesday that a sister agency of Leo Burnett USA, which has=20
been Delta's primary advertising firm since 1999, will continue handling=20
all media-buying responsibilities. Leo Burnett, responsible for ad=20
campaigns including Delta's "New York, New York" commercials, will assist=20
in the transition. In addition to the media-buying by Starcom Worldwide,=20
Delta said it will employ another outside agency, BrightHouse LLC, for=20
"selective advertising and branding projects." "Leo Burnett has been a fine=
=20
partner. This change is about finding cost efficiencies within our=20
organization," said Vicki Escarra, Delta's chief marketing officer. "We=20
have recently expanded our marketing group to support the advertising and=20
communications programs, which Leo Burnett helped establish over the last 3=
=20
1/2 years."

Nina Abnee, group account director at Leo Burnett, said the agency=20
understands "the pressures that Delta continues to face in this=20
environment" and would work toward a smooth transition in coming months.=20
Delta, the nation's No. 3 airline behind American and United, lost $1.3=20
billion last year and $466 million in the first quarter this year because=20
of a downturn in the travel industry. It has laid off 16,000 employees=20
since the Sept. 11, 2001, terror attacks and is seeking concessions from=20
its 9,000 pilots. Delta shares fell $1.15, or more than 8%, to $12.88 on=20
the New York Stock Exchange Wednesday after the carrier announced it was=20
raising $300 million through a private bond offering. The bonds can be=20
converted into Delta common stock, which could decrease the value of=20
existing shares. Delta may offer another $50 million of the bonds,=20
depending on demand.

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