Wednesday, March 30, 2016

Banks put Kingfisher Airlines brands on the block for Rs 366cr

Mumbai: Lenders to Kingfisher Airlines (KFA) have put on the block the trademarks of the airline, including the famous flying bird logo which was adopted from the UB Group's iconic beer brand. The reserve price for the trademarks, which will be auctioned on April 30, has been fixed at Rs 366 crore. The trademarks include the tag lines 'Fly the Good Times', 'Funliner' and 'Fly Kingfisher' in addition to the brand name and the logo, which have been separately copyrighted by Kingfisher.
KFA had pledged the trademarks as collateral with banks while obtaining loans — a standard practice worldwide. At its peak, when it was close to being the largest private airline in the country with international flights to the UK, the brand was valued at Rs 4,100 crore by Grant Thornton. But with the airline being grounded for over three years, the brand has suffered in valuation terms.
Also, Kingfisher promoter Vijay Mallya had an interest in the KFA brand as the image was shared with Kingfisher beer. The beer is owned by then group company United Breweries, which could not advertise in India as there are laws against liquor advertisements. United Breweries is now controlled by Heineken. "United Breweries owns the Kingfisher beer and water brands, and the airline brand holds no relevance to us," said the company's MD Shekhar Ramamurthy, speaking to TOI earlier this month. It is not known whether the banks' auction would change matters for the liquor company as it risks rivals acquiring the brand.
30/03/16 Times of India
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