Lufthansa snubs AOR Y&R, picks local shop

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FRANKFURT -- In a blow to Frankfurt-based Young & Rubicam, German airline Lufthansa has appointed Hamburg agency Springer & Jacoby to work on special assignments, including a new international branding campaign. Y&R remains the carrier's international agency of record, however.

Springer & Jacoby will create the new branding work, which Y&R will adapt for the countries in which it will run.

The relationship between Lufthansa and Y&R has been strained for some time, partly, say insiders, because of management changes within the airline's marketing department. Last fall, Lufthansa awarded a $10m budget for advertising its European business class to Ogilvy & Mather following a pitch against Y&R.

However, Y&R picked up the United Airlines account for Europe, Latin America and Asia last November and now also handles advertising for the Star Alliance of airlines, which includes both United and Lufthansa.

Copyright October 1997, Crain Communications Inc.

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