LONDON: Lufthansa is reviewing its Europe-wide PR account as the airline undergoes a major restructuring.
The company is reviewing its longstanding relationship with incumbent Burson-Marsteller for the six-figure, three-year brief.
The review is taking place as the airline undergoes cuts to cope with rising fuel costs and increasing competition from low-cost airlines and Middle Eastern carriers. It plans to cut 3,500 jobs in an effort to quadruple operating profit to more than $3.1 billion by 2015.
A spokesman for Lufthansa described the process as “part of a regular check-up,” and said the winning agency would mostly support consumer-facing work in key markets across the continent. These include Italy, France, Spain, Russia, Poland, and Scandinavia, with UK work continuing to be handled in-house.
Burson, which retained the account after a review in 2010 and has worked for the airline for more than seven years, is understood to be re-pitching.
In May, the airline named Barbara Schädler head of corporate communications. She previously worked for business management software firm SAP.
Yesterday, the company announced the unexpected departure of CEO Christoph Franz for pharmaceutical company Roche.
This story originally appeared on the website of PRWeek UK.