Government Warns of Favoritism in Qantas Advertising Contract

Strategic Insights -

The Federal Opposition has cautioned the Government to ensure transparency in the $20 million advertising contract for Qantas, following allegations of favoritism towards Clemenger, the agency with close ties to the Liberal Party. The contract, to promote the airline's privatisation, has been awarded to the best creative bidder, but concerns have been raised about the Government's commitment to privatization. The Opposition has urged the Government to put market testing and research above political connections in awarding the contract.

Key Takeaways:

  • The Federal Opposition has warned the Government against favoritism in the Qantas advertising contract, citing potential connections between Clemenger and the Liberal Party.
  • Clemenger, Australia's second-biggest ad agency, has a strong record of successful campaigns, including a successful campaign for the New South Wales Liberal Party in 1988.
  • The other agencies competing for the contract, Mojo, John Singleton Advertising, and The Ball Partnership, also have ties to the Labor Party or other organizations.
  • The Federal Government expects to raise $2 billion from the sale of 75% of Qantas, with British Airways owning the remaining 25%.
  • The contract for the Qantas advertising campaign is expected to be awarded this week.
  • The Opposition's warning comes after allegations that Clemenger's advertising concepts were not subject to market testing or research, unlike those of three other agencies.
  • The Chairman and Managing Director of Clemenger, Greg Daniel, stated that he could not confirm whether the company's campaign had been market-tested.

Statistics:

  • $20 million: the value of the advertising contract for Qantas
  • 75%: the percentage of Qantas to be sold to private investors, with the Government retaining 25%
  • $2 billion: the estimated revenue from the sale of 75% of Qantas
  • 1988: the year in which Clementer ran a successful campaign for the New South Wales Liberal Party

Sources:

  • "Opposition warns on Qantas ad contract" - The Australian, November 8, 1989
  • Australian Broadcasting Corporation (ABC) - The 7.30 Report, November 7, 1989
  • "Qantas sale to raise $2 billion" - The Sydney Morning Herald, November 5, 1989