Banks to auction Kingfisher logo, ‘Fly with Good Times’ trademarks
After a failed attempt to sell Kingfisher House, erstwhile headquarters of Vijay Mallya’s defunct carrier, lenders will auction the trademarks of the airline - ‘Kingfisher’ logo and ‘Fly the Good Times’ tagline on April 30.business Updated: Apr 29, 2016 09:57 IST
After a failed attempt to sell Kingfisher House, erstwhile headquarters of Vijay Mallya’s defunct carrier, lenders will auction the trademarks of the airline - ‘Kingfisher’ logo and ‘Fly the Good Times’ tagline on April 30.
The reserve price for the trademarks, which also includes Flying Models, Fly the Good Times, Funliner, Fly Kingfisher, Flying Bird device, is Rs 366 crore.
The airline had pledged the trademarks as collateral with banks at the time of taking loans.
A valuation report from Grant Thornton put its brand value at $550 million on resumption of operations. The airline’s brand had been registered separately from the Kingfisher beer trademark.
The online auction is being conducted by SBICAP Trustee Company, subsidiary of SBI Caps, on behalf of lenders.
According to the experts, the auction is unlikely to generate any interest from bidders as the value of brand has deteriorated.
“KFA brand value has deteriorated in last few years. In this case the owner has been the ambassador of the brand and the way Vijaya Mallya has been behaving, there are some negative connotations which are being associated with the brand. I don’t think the auction is going to generate too much interest,” N Chandramouli, CEO, TRA, a brand intelligence and data insights company said.
“If at all, it could see some interest from players who are from other sectors and want to enter the aviation industry.”
Last month, lenders made a unsuccessful attempt to auction Kingfisher House.
The auction failed as none of the bidders came forward due to high reserve price of Rs 150 crore.
The property has a built-up area of over 17,000 sq ft in Vile Parle area near domestic airport in Mumbai.
Lenders had taken over Kingfisher House in February last year in a bid to recover part of their dues totalling over Rs 9,000 crore, which includes unpaid loans and accrued interest.
First Published: Apr 29, 2016 09:57 IST