Hooters chairman heads group interested in Vanguard Airlines

KC Star ^ | 8-14-02

[Oldeconomybuyer]

KANSAS CITY, Mo. - An investors group headed by the chairman of the Hooters restaurants is interested in Vanguard Airlines, the Kansas City-based discount carrier that shut down and filed for bankruptcy last month.

The airline filed for Chapter 11 protection from creditors on July 30, abruptly stopping all flights and laying off most of its 1,100 employees. It will be in U.S. Bankruptcy Court Wednesday seeking interim financing from the group while negotiations continue on a potential acquisition or investment, said Elizabeth Cattell, vice president of marketing and advertising.

The investors group is led by Robert H. Brooks, an Atlanta businessman and chairman of Hooters of America Inc. Vanguard said last week that in a last-ditch attempt to resume operations it was in negotiations with an investor it did not then identify.

"We are seriously considering an investment in Vanguard Airlines, and have committed to provide limited interim funding to support development of the plans and projections we need in order to develop an acquisition or investment evaluation," Brooks said in a statement Tuesday. "We are impressed with what Vanguard has accomplished in the last year ... and we hope to be able to participate in a proposal to continue Kansas City's hometown airline."

The Hooters chain, known for waitresses wearing tight shorts and low-cut T-shirts, operates restaurants in 315 locations around the world. Brooks is also the founder of Eastern Foods Inc., which makes the Naturally Fresh and Jackaroo brands of dressings, sauces and dips.

Cattell declined to say how much in interim financing Vanguard will seek from the Brooks group to maintain its skeletal staff while the negotiations continue.

Scott Dickson, Vanguard's chairman and chief executive officer, said given recent actions of the airline industry's biggest carriers, Kansas City, Mo., and Kansas City, Kan., need to recognize Vanguard's value and the role it plays in keeping local fares low.

"We believe it is in the best interest of the company, its creditors and Kansas City that we continue to maintain the airline in anticipation of a potential investment," Dickson said. "Vanguard has demonstrated a business plan that was working, and the serious consequences to Kansas City of a permanent shutdown of (Vanguard) are becoming more and more clear."

Cattell said Brooks' interest surfaced after the airline filed its bankruptcy petition.

"We're very pleased with our discussions, but I can't go into any further details," she said. "But we do think it's very important for the airline and our employees."

"I hope it pans out," said Mike Boyd, an aviation analyst who is president of the Boyd Group in Evergreen, Colo. "I'm sure he's got a lot of money, and Vanguard just needs more financial backing and not necessarily other airline people coming in. This is going to be the butt of jokes for a while, but I hope it works."

[Mr. K]

um....Ivan... Duh! that's the point

[MadIvan]

Isn't that enough?

Not if you are in an economy class seat that was designed for a circus midget. Sorry, I'm 6 feet tall and such things matter to me. ;)

Regards, Ivan

[MadIvan]

It could be dangerous. Some pilots may be checking out...well never mind, rather than actually bothering to fly the plane correctly.

Regards, Ivan

[TheRightGuy]

Flight attendant uniform design contest is now underway.

Remember the good ol' days when Southwest billed itself as Luv Airlines and the stews wore hotpants.

[NeoCaveman]

Will their slogan be "We love to fly and it shows"

[KC Burke]

I remember when the Brannif stews in training were all housed in an apartment complex near where I lived in the 60s....well perhaps I won't tell that story.

[maximus@Nashville]

"Hooters Boys"? I suppose there might be merit in that considering the number of women (and Gays) traveling.