No takers for 'Fly the Goodtimes'

Published by Metro India News Online on April 30, 2016 17:08:05 PM

Lenders today initiated an auction of various brands and trademarks of Kingfisher Airllines to recover their dues from businessman Vijay Mallya who has been under pressure since last month to pay back his debts to the consortium of banks.

Trademarks auctioned

Besides the logo, the 17 lenders led by SBI have put the once-famous tagline of the now-defunct airline, ‘Fly The Goodtimes’ for auction along with other trademarks like Flying Models, Funliner, Fly Kingfisher and Flying Bird Device. But the auction was a damp squib as there were hardly any bidders.

Not the first time

This is the second time the lenders have failed to attract any bidders. Last month, the consortium had failed in its attempt to sell the airline's erstwhile headquarter Kingfisher House in Mumbai due to the high reserve price of Rs 150 crores.

The online auction of brand Kingfisher is being conducted by SBI Cap Trustee Company on behalf of lenders under the SARFAESI Act.

Collateral offered
The brand Kingfisher was collateralised to banks for a massive amount of Rs 4,000 crore (by Grant Thornton) in 2010. But now, the reserve price for the trademark has been kept at Rs 366.70 crores which is not even one-tenth of the price at which it was pledged with as collateral for the loan.

According to the airline's annual report, the Kingfisher Airlines was the largest airline in the country, with a five-star rating from Skytrax at its highest peak. Burdened under huge losses and liabilities, the airline was grounded in late 2012.

Mallya left the country on March 2, 2016 for London. Earlier this week, the government had asked Britain to deport Mallya, citing the revocation of his passport and a non-bailable warrant against him.