According to reports, the creditors of the defunct Kingfisher Airlines has decided to sell the brands - Kingfisher Airlines as well as other related trademarks. It is said that KFA owes Rs 7000 crores to the creditors.Naturally the intelligence was carried alongside lot of importance yesteryear the media.
My kickoff reaction was who wouldn't desire to larn such a peachy construct ! I had the impression that Kingfisher construct was upwardly for sale.
When nosotros hold off at the fine print, things are non that attractive. According to media, the creditors receive got command over " Kingfisher Airlines " as well as non the Kingfisher beer brand. And reports too advise that 5 years ago, Kingfisher Airlines construct was valued at Rs 3000 crore. Now the inquiry is who would move interested inwards Kingfisher Airlines construct ?
My approximate would move that none would move interested inwards that because KFA every bit an airlines construct has lost the origin of value. The value was lost inwards 2 aspects -
a) The airlines is defunct as well as then at that topographic point is no functional value for the brand.
b) The major origin of equity for Kingfisher Airlines' construct was from the Kingfisher beer construct which remains alongside the UB group.
I intend the creditors had made a huge error inwards taking Kingfisher construct , which is an intangible asset, every bit a collateral without agreement how that construct derived its value. Kingfisher Airlines every bit a standalone construct does non receive got much value if de-linked alongside the beer construct as well as the construct possessor alongside whom the construct had lot of linkage. Who e'er that made the pitch to the creditors was a peachy salesman !
Now for a suitor, buying Kingfisher Airlines construct at a high toll doesn't construct feel since this construct straight off has the liability of a "failed construct " image. One tin mail away purchase this construct to forbid that construct from flight i time to a greater extent than for e'er but its non worth it !
So who would move interested inwards buying a dead construct ?
