WAA has refuted claims that it has been hit hard by the news that client, duo has gone into administration. The Sutton-Coldfield agency was appointed last September to handle the £2 million marketing budget and in doing so, help launch and position the agency as a low-cost, but with-the-frills carrier.
The account incorporated advertising on TV, radio, taxis, outdoor and airport media, and regional and trade press as well as supporting direct marketing material.
While WAA\'s managing director, Andrew Wilson, was unavailable to speak to Adline at the time of going to press, the following statement was released on his behalf: “I believe that duo has a strong and innovative proposition that certainly plugged a gap in a highly competitive market. Its strategy was correct. It probably just needed a longer time to root itself, but unfortunately time was not on its side”.
It is believed duo\'s debts could rise to as much as £20 million, which includes the claims that are expected to come from passengers who were left stranded without flights across Europe.
Other low-cost airlines have speculated the reasons for duo\'s demise, just six months after taking to the air. Speaking to the press earlier this month, an Easyjet spokesperson said: “In order to compete you do need an awful lot of cash. EasyJet, on advertising, spends around £25 million. It is very difficult for other airlines to come in. You have got to get people thinking. “I want to go away, I\'ll look at duo\'s website\'.”
It is speculated that WAA has been forced to make redundancies as a result of the loss, although no official figures have been released by the agency. The statement continued: “Whilst, like any agency, the unplanned loss of a client is disappointing it is still part of everyday business and WAA, with its strong, stable and wide client base, is in a good financial position to absorb any shortfalls. In addition, like any good business we are not in the situation of being dependent on any one client.”
duo\'s closure has resulted in around 260 redundancies in-house, including the firm\'s five-person marketing department, headed up by marketing director Rob Rees and head of marketing Duncan Osbourne.
Wilson offered solace to the team at duo, remarking: “It has been a great pleasure for WAA to work with duo\'s experienced team of airline professionals whom we are sure will find a suitable route through their current dilemma.”