Thursday, March 31, 2016

Interesting to see who bids for Kingfisher brand: Consultant

Chennai, March 30 (IANS) 
It will be interesting to see who bids for the Kingfisher trademark and its logo now put on auction by the lenders to Kingfisher Airlines, a brand consultant said on Wednesday.

"The Kingfisher Airlines brand is an extension of the brand equity of the popular beer brand. The branding was around having good times. I am not sure who will be interested in the brand at this juncture," Ramanujam Sridhar, founder and chief executive officer, Brand Comm, a brand consulting company, told IANS over phone from Bangalore.

According to him, if the potential bidder is an airline operator, the question is why would he, since he could actually extend his existing brand.

On March 29, SBICAP Trustee Company Ltd. put on the block nine brands/trademarks of Kingfisher Airlines following huge loan default.

According to SBICAP Trustee, the total loan dues of Kingfisher Airlines as of January 31, 2014, were around Rs.6,963 crore.

The banks lent to the Kingfisher Airlines against Kingfisher brand and trademarks as collaterals.

The borrowing was guaranteed by United Breweries (Holdings) Ltd. and Vijay Mallya, the airline's promoter.

The consortium of lenders took possession of the trademarks on March 8, 2016.

While Kingfisher Airlines owes more than Rs.6,963 crore borrowed against its brand value, the reserve price for the auction of the brands/trademarks is fixed at Rs.366.70 crore.

According to Sridhar, reviving a dead brand has several challenges as it might come with a negative baggage.

"Kingfisher Airlines is not in existence for sometime. For a traveller, punctuality of flights is more important, which in turn would promote customer loyalty," Sridhar said.

Speaking about Kingfisher Airlines brand, he said a lot of negativity is associated with the it for the past several months.

The e-auction is fixed between 11.30 a.m. and 12.30 p.m. on April 30.

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