Bankers, who have put trademarks of Kingfisher Airlines (KFA) on the block, including the famous flying bird logo, may see their hopes nosedive as brand experts said the reserve price of Rs 366 crore is too steep in the current scenario.
"I don't think there will be many takers for the brand because of the negativity surrounding it at present," said Sam Balsara, CMD of Madison World. "A brand has to be nurtured lovingly. A brand name without any current viable business is not a very attractive proposition for a buyer."
On Thursday, United Breweries, the maker of Kingfisher beer, warned of legal action if KFA logo is used in other categories other than aviation. Under Vijay Mallya, KFA had adopted the logo from the UB Group's Kingfisher beer brand and pledged it along with the tag lines 'Fly the Good Times', 'Funliner' and 'Fly Kingfisher' as collateral with banks, while obtaining loans.
"If it had been priced at Rs 20 crore, maybe somebody would buy it," said brand expert Harish Bijoor. "I don't think anybody with deep pockets would be interested in buying an airline brand that has fizzled out. Also, the legal implications that come with it for using it in other categories are a big put-off. What if a company that buys it to launch an airline decides to brand the water it serves in the aircraft as 'Kingfisher'? It won't be able to do it because Kingfisher water already exists and its rights lie with UB."
02/04/16 John Sarkar/The Times Of India
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"I don't think there will be many takers for the brand because of the negativity surrounding it at present," said Sam Balsara, CMD of Madison World. "A brand has to be nurtured lovingly. A brand name without any current viable business is not a very attractive proposition for a buyer."
On Thursday, United Breweries, the maker of Kingfisher beer, warned of legal action if KFA logo is used in other categories other than aviation. Under Vijay Mallya, KFA had adopted the logo from the UB Group's Kingfisher beer brand and pledged it along with the tag lines 'Fly the Good Times', 'Funliner' and 'Fly Kingfisher' as collateral with banks, while obtaining loans.
"If it had been priced at Rs 20 crore, maybe somebody would buy it," said brand expert Harish Bijoor. "I don't think anybody with deep pockets would be interested in buying an airline brand that has fizzled out. Also, the legal implications that come with it for using it in other categories are a big put-off. What if a company that buys it to launch an airline decides to brand the water it serves in the aircraft as 'Kingfisher'? It won't be able to do it because Kingfisher water already exists and its rights lie with UB."
02/04/16 John Sarkar/The Times Of India
