Kingfisher Airlines' lenders put Kingfisher logo on block to recover dues

MUMBAI: Lenders to Vijay Mallya and Kingfisher Airlines have put on block the 'Kingfisher logo' in their ongoing efforts to recover over Rs 9,000 crore from the carrier which went belly-up in 2013.

The base price for the logo has been fixed at Rs 366.7 crore, for which bids have to be submitted by April 30, said SBI Cap Trustee Co, which has been entrusted the job of auctioning the logo. This is part of the 'sale of trademarks including the brand value of 'Kingfisher logo', it said in a public notice on Tuesday.

The logo belongs to Kingfisher Airlines (KFA) and was pledged with the lenders by the company before it collapsed amidst a price war and spiralling bad debts.


The notice issued in national dailies says brands and trademarks relating to the label mark of Kingfisher, Fly Kingfisher, the logo of the Flying Bird Device and the word mark 'Fly the Good Times' associated with KFA have been pledged with banks.

These trademarks will go under the hammer as part of this e-auction on April 30.

Although it is not clear who will benefit by buying the brand as any airline may find it difficult to draw customers, small beer manufacturers could use the brand to exploit the popularity of Kingfisher beer. But before that, they may have to contend with legal challenge from Heineken and United Breweries. Also, the trademarks and other promotional material surrounding the brand, like 'Fly the Good Times', belong to KFA and it is not clear how another beer company could use it.

United Breweries did not respond to an email seeking comments, sent to the address on its website. A representative of Vijay Mallya did not respond either.

"There may not be any legal challenge in selling the brand, but there could be commercial challenges in terms of who would want to buy the brand," said Prem Rajani, managing partner at Rajani Associates, a law firm.

SBI and a dozen other lenders trying to recover dues from KFA are leaving no stone unturned. They are fighting more than 20 cases in courts, including claiming the $75-million severance payment Mallya is to receive from Diageo Plc. The British drinks company bought a controlling interest in United Spirits, which manufactures Bagpiper and McDowell's whiskey.

The banks are already in the process of selling other assets though legal and market conditions have been a constraint. Lenders attempted to sell Kingfisher House, located near Mumbai airport, a fortnight ago, but it did not receive any bids since the base price of Rs 150 crore was perceived to be too high.