Airline shaves fifth from in-flight magazine costs

10 April 2002
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11 April 2002

A British airline has cut the production costs of its in-flight magazine by a fifth after holding a reverse auction for a publishing contract.

The purchasing and marketing functions of the airline, which cannot be named because of a confidentiality clause, held the auction to renew a two-year contract for the design and editorial content of the magazine.

Five creative agencies bid for the £500,000 contract and were weighted on longevity, creativity, experience and content breadth.

Andrew Douglas, senior purchasing specialist at Oracle, which hosted the auction, said the incumbent had won the contract, but only after cutting its costs by 20 per cent. He admitted this was an unusual service for an airline's first e-auction.


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