D'ARCY MASIUS BENTON & BOWLES/NEW YORK NAMED ADVERTISING AGENCY FOR THE NEW EASTERN
D'ARCY MASIUS BENTON & BOWLES/NEW YORK
NAMED ADVERTISING AGENCY FOR THE NEW EASTERN
ATLANTA, Nov. 6 /PRNewswire/ -- The New Eastern Airlines, a start-up airline organized by Atlanta-based Airline Acquisition Corporation, announced today that it has selected D'Arcy Masius Benton & Bowles/New York (DMB&B) to provide advertising and marketing services to the new airline. The account is estimated at more than $20 million in the first year.
In making the announcement, New Eastern president Bruce Nobles said the agreement with DMB&B completes a major step in developing the marketing side of the airline.
"Nothing will be more critical to the success of The New Eastern than our ability to communicate the personality of the new airline and the quality of our product," said Nobles. "We're convinced that the strengths of DMB&B match the needs of The New Eastern."
Nobles pointed to three factors which were instrumental in the selection of DMB&B: the agency's experience in launching new products; its long-term, stable client relationships, some spanning 50 years; and the chemistry which developed between the airline and agency representatives during weeks of discussions which culminated with DMB&B's selection.
"From the outset of our discussions with The New Eastern, we were intrigued with this concept because we believe that the travel, tourism and leisure industry represents one of the best growth areas in this decade," DMB&B/New York Managing Director Peter Rosow said.
"As our discussions progressed, we realized that this was an exciting opportunity to do things differently in the airline industry," Rosow said. "Given our history and track record in marketing new products, we thought this was a unique situation where we could be involved with an airline from the ground up."
Nobles said that one of the major challenges facing the airline is to establish a presence in the marketplace as a full service carrier that is not driven solely by discount fares and gimmicks. "The New Eastern will offer a mature, diversified product that will meet or exceed the expectations of both business and leisure travelers."
Formation of the airline is proceeding along two parallel paths -- operational and financial -- with plans which call for the two paths to come together during the first quarter of 1992.
Lehman Brothers, which is coordinating financing for the airline, expressed its strong approval of the addition of DMB&B to The New Eastern team.
"We have believed for some time that a valuable niche exists for The New Eastern," said James Swigart, senior vice president at Lehman Brothers. "We have completed all of our evaluation work and we are now well into the phase of meeting and talking directly with individual and institutional investors. At this point, we are very pleased with our progress."
The operating plan which has been developed for The New Eastern calls for a schedule that will grow to 150 daily flights out of the Atlanta hub to 40 cities during the first year of operation. The airline would serve all the major cities in the East, South, and Midwest of the United States and would extend as far west as Dallas and Kansas City. Within four years, the airline would provide Atlanta with 209 daily flights to 49 cities extending the route structure as far west as Denver.
/CONTACT: Charles Miller of Conway & Co., 202-289-0800, for The New Eastern Airlines/ CO: The New Eastern Airlines; Airline Acquisition Corporation;
D'Arcy Masius Benton & Bowles/New York ST: Georgia, New York IN: ADV AIR SU: MK -- DC017 -- 1662 11/06/91 11:41 EST