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Airlines

Name: VANGUARD AIRLINES
7JetSet7 Code: VAG
Status: Currently Not Operational
Region: NORTH AMERICA
City: KANSAS CITY
Country: USA
Employees 1049
Web: flyvanguard.com
Email: custserv@flyvanguard.com
Telephone: +1 (816) 243-2100
Fax: +1 (816) 243-2922
Sita:
Background
(definitions)

FOUNDED IN 1994. DOMESTIC & REGIONAL, PASSENGER, JET AIRPLANE SERVICES.

NOVEMBER 1995: "SIMPLIFIED FARE" OPERATOR TO CHICAGO MIDWAY, (DFW), (DEN), DES MOINES, (MSP), SALT LAKE & WICHITA.

2 ORDERS (11/95) 737-300, EX-(ALO), IN PLACE OF 737-400'S. FLEET NOW 7 AIRPLANES.

DECEMBER 1995: LEASES 8TH 737-200.

JANUARY 1996: LOST -$2 MILLION IN LAST 6 MONTHS.

NEW ROUTE TO (SFO).

TO ADD 8 AIRCRAFT FOR (LAX) ROUTE IN 19/96.

BOB MCADOO, PRESIDENT.

1995 = -$12.2 MILLION. 4TH QUARTER = -$3.44 MILLION.

FEBRUARY 1996: 1 737-200 (19955) EX-(TAV), 5 YEAR LEASED. BEDEK TO DO "D" CHECK. (VAG) NOW OPERATES 8 737'S.

APR 1996: J B MILLER, MANAGER PLANNING & TRAINING (EX-TWA).

JUNE 1996: SABRETECH HAS MAINTENANCE CONTACT FOR "C" CHECKS OF 1 737-200 (19603) & 2 737-300QC'S (23499; 23500) AT PHOENIX.

JULY 1996: THE AIRLINE THAT IS "LIBERATING THE MIDWEST" WICHITA TO MIDWAY TO (DFW). (-$2.2 MILLION).

737-200'S (JT8D-9A/15) $8 MILLION MAINTENANCE CONTRACT TO GREENWICH AIR SERVICE.

AUGUST 1996: DON BAXTER, CHIEF INSPECTOR & JIM BROWN, PLANNING SUPERVISOR.

SEPTEMBER 1996: TRAMCO (BFG) MAINTENANCE CONTRACT FOR "C" CHECKS FOR 8 737-200'S. (TWA) SAID COULD NO LONGER DO CONTRACT MAINTENANCE.

OCTOBER 1996: (DFW) TO KANSAS CITY TO PHOENIX, AND TO SEATTLE CINCINNATI, AND MIDWAY (737'S).

JOHN MCCARTHY, DIRECTOR QA RETIRED (POSITION ELIMINATED).

NOVEMBER 1996: BOB MACADOO RESIGNED & REPLACED BY JOHN TAGUE, CHAIRMAN, PRESIDENT & CEO (EX-PRESIDENT (AAT) AND ALSO CHAIRMAN. PRESIDENT & CEO OF AIR SOUTH (SOT).

DENVER TO PHOENIX (737-200/-300).

DECEMBER 1996: NEW NON-STOPS TO ATLANTA, CHICAGO/MIDWAY, LAS VEGAS, ORLANDO, AND ST PETERSBURG WITH ONGOING SERVICE TO (MIA) AND FT MYERS, FLA.

/96 = -$25.8 MILLION (-$12.2 MILLION).

MAY 1997: 453 EMPLOYEES (INCLUDING 172 FLIGHT CREW (FC) & 45 MAINTENANCE TECHNICIANS (MT)).

TO 15 CITIES.

TO RETURN 737-300'S TO (ALO) AFTER SUMMER. POSSIBLE 737-200'S FROM AIR SOUTH (SOT). 1 737-200 (19708), EX-(TAC) WITH AVAERO HUSHKITS, INTERLEASE 5 YEAR LEASED. 1 737-3YO RETURNED.

JUNE 1997: JOHN TAGUE, CHAIRMAN, PRESIDENT AND CEO RESIGNED AND REPLACED BY BOARD MEMBER ROBERT SPANE.

HAMBRECHT & QUIST OWN 70% OF (VAG) AND ALSO OWNS AIR SOUTH (SOT).

AUGUST 1997: NOW SERVES 12 CITIES. TO EXPAND TO (JFK) IN 1997-09.

SEPTEMBER 1997: 1 737-244 (19708), INTERLEASE LEASED, AND 1 737-297 (22629). LETTER OF INTENT (LOI) FOR 9TH & 10TH 737-200'S FROM MIAMI LEASING WITH DELIVERY 1997-12 AFTER HUSHKITS INSTALLED.

500 EMPLOYEES.

OCTOBER 1997: NONSTOP TO WASHINGTON DULLES.

2 737-247'S (19607; 19612), EX-(SOT), MIMI LEASING. PATRIOT AVIATION SERVICES, NM INSTALL AVAERO HUSHKITS & DO "C" CHECK.

NOVEMBER 1997: TO PITTSBURGH.

NEW LIVERY WITH VANGUARD LARGER AND TWO-TONE NAVY BLUE WITH GRAY ON WHITE BACKGROUND.

JANUARY 1998: 1 737-242 (21186).

1997 = .767 BILLION (RPM) (+14.9%), +19.0% (ASM), 59.2% LF (-2.1), 1.311 MILLION (PAX) (+4.0%). USA MARKET SHARE 1997 = 24TH 0.135 (RPM), 22ND LF. 1997 = -$28.2 MILLION (-$25.8 MILLION). 4TH QUARTER = -$6.6 MILLION.

MARCH 1998: JIM MILLER, VP MAINTENANCE & ENGINEERING.

APRIL 1998: 453 EMPLOYEES (INCLUDING 172 FC & 45 MT).

JESSE PRUNEDA, DIRECTOR QA. JOHN MACVARISH, CHIEF INSPECTOR.

JULY 1998: 1ST 6 MONTHS = .282B RPM (-34.3%), -40.5% ASM, 66.4% LF (+6.3), 713K PAX (-1.1%). 1ST +VE 2ND Q = +$323,000!

AUGUST 1998: JIM MILLER, VP ENGINEERING & QA. AL GORTHY, VP MAINTENANCE.

OCTOBER 1998: DAVE MARTIN, BASE MAINTENANCE MANAGER. MIKE SCHEE, DIRECTOR MAINTENANCE REPLACES DON BAXTER. ROBERT CARROLL, MANAGER MAINTENANCE.

DECEMBER 1998: POSSIBLE MERGER WITH FRONTIER AIRLINES (FRO), REJECTED BY (FRO), ALTHOUGH W R HAMBRECHT INVESTORS (MAJOR STOCKHOLDER IN (VAG) DID BUY 8% (FRO).

JANUARY 1999: 2 737-200H'S (22979, 21735), EX-MALEV (HGA), (GEH) 5 YEAR LEASED. NOW 11 WITH +6 MORE 737-200 IN 1999.

1998 = -$1.5 MILLION (-$28.2 MILLION): 702 MILLION (RPM) (-8.5%); -19.6% (ASM); 67.4% LF (+8.2); 1.51 MILLION (PAX) (+14.8%). 4TH QUARTER = -$600,000. BY EXCEEDING OPERATING PROFIT OF $100 MILLION, NOW BECOMES A "NATIONAL" CARRIER.

EXPECTS TO HAVE 13 STAGE 3 737-200'S BY END 1999.

MARCH 1999: LETTER OF INTENT (LOI) 3 737-230'S (22120; 22121; 22122), EX-(DLH), UNICAPITAL LEASED STARTING 7/99, COOPESA (COO) "D" CHECK/PAINT.

APRIL 1999: ANNOUNCES 1-FOR-5 REVERSE STOCK SPLIT.

NOW HAS 11 737-200'S.

937 EMPLOYEES (INCLUDING 83 FC, 122 CA, & 45 MT) (*FLT).

(http://www.flyvanguard.com). (custserv@flyvanguard.com).

/98 = +$.04M (-$4.6M).

MAY 1999: 5-FOR-1 REVERSE STOCK SPLIT.

IN 7/99, CHICAGO MIDWAY TO BUFFALO, NY (737-200).

JUNE 1999: TO CINCINNATI & BUFFALO, NY FOR TOTAL 9 CITIES FROM KANSAS CITY AREA.

JULY 1999: CONSIDERS MOVING ITS HQ FROM KANSAS CITY TO CHICAGO MIDWAY AIRPORT IF IT CAN WORK OUT A DEAL WITH THE AIRPORT FOR A MAINTENANCE HANGAR AND GATES.

12TH 737 DELIVERY.

ROBERT CARROLL, DIRECTOR MAINTENANCE (ACTING). WILLIAM KRATZ, DIRECTOR MAINTENANCE.

1ST 6 MTHS = .40B RPM (+17.5%), +11.8% ASM, 69.8% LF (+3.4), .87M PAX (+22.2%). 2ND Q = +$1.95M (+$323K) (+500%): +26% ASM, 70.6% LF (+2.9).

737-230 (715-22120, N120SR), EX-(DLH), UNICAPITAL LEASED.

AUGUST 1999: 1ST 7 MONTHS = 485.07M RPM (+19.6%), 72.4% LF, 1.03M PAX (+23.3%).

SEPTEMBER 1999: 3 737-230'S (22120; 22121; 22122), EX-LUFTHANSA, UNICAPITAL LEASED. 737-247 (51-19603) RETURNED TO (CSV).

OCTOBER 1999: 3RD Q = +$190K (-94%) (+$3.3M), DUE TO HIGHER FUEL COSTS AND LATE DELIVERY & INTEGRATION OF 2 AIRPLANES: +31% RPM, +37% ASM.

EXPECTS FLEET OF 18 BY END/00.

NOVEMBER 1999: (LOI) 6 ORDERS 737-2B7, US AIRWAYS (USA) LEASED.

DECEMBER 1999: 5TH ANNIVERSARY!

NOW SERVES 10 CITIES.

737-281 (244-20414, N219US) RETURNED TO LESSOR.

JANUARY 2000: IN 4/00, NONSTOP CHICAGO MIDWAY-MYRTLE BEACH, SC, MYRTLE BEACH-ATLANTA, & PITTSBURGH-ATLANTA.

/99 = 854.8M RPM (+21.8%), +24.3% ASM, 66% LF (-1.3), 1.89M PAX (+25.4%).

FEBRUARY 2000: 2 737-200'S, LEASED. 2 737-200 "C" CHECKS AT SPAR EDMONTON.

MARCH 2000: 1ST OF 6 737-2B7'S, (USA) LEASED.

/99 = -$5.2M (-$1.5M). 4TH Q = -$7.3M (-$575K).

APRIL 2000: IN 6/00, DENVER-CHICAGO MIDWAY.

14TH 737-200 DELIVERY.

AUDITORS ERNST & YOUNG EXPRESS "SUBSTANTIAL DOUBT ABOUT (VAG)'S ABILITY TO CONTINUE AS A GOING CONCERN," CITING NET LOSSES, AND "WORKING CAPITAL DEFICIT," AS COSTLY FLEET DEPLETES CASH. MAINTENANCE COSTS /99 WERE +33%, AND /00 WILL COST $8.2M FOR HEAVY MAINTENANCE. AIRPLANES AVERAGE 25 YEARS OLD.

1ST Q = -$7.6M (+$41K): 59.7% LF (-9).

968 EMPLOYEES (INCLUDING 98 FC, & 160 CA) (*FLT).

737-2B7 (956-22884, N272AU), EX-(USA). 737-281 (244-20414), EX-(FSB). 737-222 (107-19547) RETURNED TO (FSB).

MAY 2000: JEFF POTTER, PRESIDENT & CEO, EX-FRONTIER (FRO). ROCKY SPANE, CHAIRMAN.

2 737-2B7'S (22886; 22892), EX-(USA).

JUNE 2000: TO NEW ORLEANS (2/DAY) IN 8/00.

JULY 2000: RONALD MCCLELLAN, VP MAINTENANCE.

2ND Q = -$2.7M (+$2M): 61.5% LF (-9.1).

737-2A6 (20412) RETURNED TO (IAL).

AUGUST 2000: JOHN MCVARISH, DIRECTOR MAINTENANCE.

/99 = -$4.58M (-$1.48M):1.38B RPK (+21.8%); 66% LF; 1.89M PAX (+25.4%); 934 EMPLOYEES (-5.4%); (*ATW).

SEPTEMBER 2000: IN 11/00, NONSTOP TO NY LAGUARDIA. ALSO, ONE DAILY NONSTOP TO PITTSBURGH. IN 10/00, NONSTOP TO (LAX).

737-222 (19548) PARTED OUT.

OCTOBER 2000: 1ST 6 MONTHS = -$10.3M. 1ST 9 MONTHS = 726.6M RPM (+12.1%), +29% ASM, 60.1% LF (-9.1), 1.51M PAX (+5.6%).

NOVEMBER 2000: 3RD Q = -$4.7M, DUE TO HIGHER FUEL COSTS AND INCREASED COMPETITION.

DECEMBER 2000: IN 1/01, TO AUSTIN-BERGSTROM, BUFFALO, NY; & TO MYRTLE BEACH, SC, ALL NONSTOPS (737).

6/2 ORDERS (2/01) MD-80'S, PEGASUS (PSS) LEASED, EX-(CAL)/(AAL), FROM NEW "STRATEGIC" PARTNERSHIP WITH (PSS).

JANUARY 2001: /00 = 963.22M RPM (+12.9%), +25.5% ASM, 59.2% LF (-6.8), 1.88M PAX (-.4%); -$26M (-$5.1M).

FEBRUARY 2001: 1 737-222 (210-19955, N603DJ), RETURNED TO (IAL).

MARCH 2001: 1 MD-82 (1139) DELIVERY AFTER REFURBISHMENT AT COOPESA (COO). TO ENTER SERVICE IN 4/01 TO LAS VEGAS AND (SFO).

4TH Q = -$11M (-$7.3M): +57% FUEL COSTS.

APRIL 2001: 1ST Q = .24B RPM (+15.6%); +15.2% ASM; 59.9% LF (+.2); -$11.5M (-$7.6M).

MAY 2001: JEFF POTTER, CEO, RESIGNS, TO REJOIN FRONTIER (FRO) AS EXECUTIVE VP & COO. REPLACED BY SCOTT DICKSON, PRESIDENT EX-TACA (TAC).

2ND MD-83 (49846), EX-AERO LLOYD (ACH) OF 6.

JUNE 2001: 1 MD-87 (49780), EX-AMERICAN (AAL) PEGASUS (PSS) LEASED.

TIM HUFF, DIRECTOR QA AND CHIEF INSPECTOR, EX-ACCESSAIR (CCE), REPLACES JESSE PRUNEDA.

JULY 2001: IN 8/01, ATLANTA-KANSAS CITY-RENO (MD-80).

1ST 6 MONTHS = 523M RPM (+9.4%), +.7% ASM, 66% LF (+5.3), 718K PAX (-29.3%).

737-2B7 (974-22886) RETURNED TO (USA).

AUGUST 2001: SCOTT DICKSON, CHAIRMAN.

2ND Q = -$6.8M (-$2.7M): TOTAL ASSETS +$27.7M, TOTAL LIABILITIES $48M. 72.1% LF (+10.6).

1 737-25A (23789), EX-TACA (TAC), (PSS) LEASED. MD-81 (48094), PSS LEASED OF 8.

SEPTEMBER 2001: AMENDS 2ND Q = -$10.9M.

IN 12/01, TO FT LAUDERDALE (MD-80, DAILY).

IN AFTERMATH OF TERRORIST ATTCK ON NY (WTC) TOWERS & PENTAGON, (VAG) WILL CUT SCHEDULES BY 20%, UPPER MANAGEMENT HAS TAKEN -25% SALARY CUTS AND WILL LAY OFF 15% OF STAFF.

NOVEMBER 2001: 3RD Q = -$3.6M AND SEEKS TO OBTAIN FEDERAL LOAN ASSISTANCE, INCLUDING $2.3M FEDERAL GRANT: +17% RPM, +3% ASM, 67% LF (+8). IN 12/01, NONSTOPS TO COLORADO SPRINGS (2/DAY).

DECEMBER 2001: COMPLETES 7 YEARS OF SERVICE! NOW FLIES TO 16 DESTINATIONS COAST-TO-COAST WITH 25 FLIGHTS OUT OF ITS MAIN BASE AT KANSAS CITY.

FEBRUARY 2002: PROJECTS 4TH Q = -$2-3M (-$11M). /01 PROJECTS = -$28M (-$26M), INCLUDING $7.3M FEDERAL GRANT.

2 MD-82 DELIVERIES, DEBIS (DEA) LEASED.

IN 4/02, TO ORLANDO (DAILY, NONSTOP). IN 3/02, TO MYRTLE BEACH (3/WEEK).

970 EMPLOYEES (*JPA).

(T: (816) 243-2100). (FAX: (816) 243-2922).

APRIL 2002: 4TH Q /01 = -$4.9M (-$11M): 116.9M RPM (+26.4%); +16.1% ASM; 65.2% LF (+5.3); 387.61K PAX (+11.9%). /01 = -$24.43M (-$26.03M): 1.71B RPK (+10.6%); 64.4% LF; 1.27M PAX (-15.7%); 970 EMPLOYEES (+6.3%).

WITHOUT FEDERAL FUNDING AND GRANTS, MAY WELL HAVE NEEDED TO SHUT DOWN.

IN 6/02, SEATTLE-KANSAS CITY CONNECTING TO FLIGHTS TO ATLANTA, AUSTIN, BUFFALO, CHICAGO, (DFW), NY, AND PITTSBURGH. PLANS TO HIRE +100 EMPLOYEES FOR TOTAL 1,049.

8TH MD-80 DELIVERY AND PLANS FOR MORE.

MAY 2002: 1ST Q = -$8M (-$11.5M): +26% RPM; +16% ASM, 65.2% LF (+5.3). 1ST Q = 471.66M RPK (+22.72%); +16.05% ASK; 63.4% LF (+3.4); 342K PAX (+12.13%).

SERVICE TO 18 CITIES. STILL HOPING FOR FEDERAL GOVT LOAN GUARANTEE.

MAIN BASE: KANSAS CITY INTERNATIONAL (MCI).

July 2002: Applies for a $40M loan, of which $35M would be backed by the US govt. Suspends operations, lays off nearly all its employees, and files for bankruptcy.

6 months = 1.1B RPK (+31.19%); +33.18% ASK; 65% LF (-1); 779K PAX (+24.44%).

September 2002: Atlanta businessman, Robert Brooks, Chairman of Hooters of America is likely investor to save Vanguard (VAG). He has been providing $50,000 weekly to keep (VAG)'s skeletal staff intact while negotiations continue. Will begin service as Hooters Airlines with Kansas City as its hub. It was reported later that the Hooters acquisition offer was rejected and (VAG) is now evaluating other investment applications.

October 2002: Begins liquidation.

Fleet:
(definitions)

Click below for photos:
VAG-MD-82
VAG-MD-87
VAG
VAG1

March 2003:

0 737-2B7 (JT8D HK) (22869; 22884;, 22886; 22892), EX-(USA), (UAG) LSD, (974-22886, N127NJ) (22882 RTND 2001-03). 22884; 22886; RTND (USA) 2001-06; 22892 RTND 2001-09. ALL RTND.

1 737-2Q8 (JT8D HK) (582-21735, /79 N121NJ), EX-(HGA), (GUI) 5 YR LSD 1999-01.

1 737-2T5 (JT8D HK) (950-22979, /83 N120NJ), EX-(ORN)/(HGA), (GUI) LSD 1999-01.

0 737-222 (JT8D HK) (114-19548, /68 67 84; 210-19955, /69 57 53), EX-(UAL), (IAL) LSD, TRAMCO, 19548 PARTED OUT 2000-09, (N603DJ), EX-(TAV), 19955 RTND (IAL) 2001-02.

3 737-230 (JT8D HK) (22120, N122NJ; 720-22121, 1; 22122, 4), EX-(DLH), UNICAPITAL 5 YR LSD 1999-11, NORDAM HUSHKITS.

0 737-242 ADV (JT8D HK) (21186), TO (PIE).

0 737-244 (JT8D HK) (87-19708, N620PC), EX-(SAA)/(TAC), (IAL) 5 YR LSD, RTND TO LESSOR 2001-03. AVAERO HUSHKITS.

0 737-247 (JT8D HK) (70-19607, /68 42 61 N912MP), EX-(WAL), SCRAPPED 2004-02. 120Y.

0 737-25A (JT8D HK) (1392-23789, /87 34 21 N239TA), EX-(TAC), (PSS) LSD 2001-08, RTND 2002-09. LST (ACR) 2005-02.

0 737-281 (JT8D HK) (244-20414, /70 65 70), EX-(ANA)/(FSB) 2000-05, SCRAPPED.

1 737-297 (JT8D HK) (842-22629, /82 31 74 N005WM), EX-(ALO), (ILA) LSD.

0 737-3Y0QC (CFM56-3) (1242-23499, /86 N330AW; 3-23500, /86 29), EX-(AMW), (GUI) LSD, RTND, LST (SHG).

0 MD-81 (JT8D-217) (1053-48094, /82 N814US), EX-(PSA), (PSS) LSD 2001-08. SCRAPPED 2002-12.

0 +0/3 ORDERS MD-82 (JT8D-217A),(1139-49222, /84 53 25 N130NJ; 40-49229, 1; 304-49440, /86 34 23 N135NJ, 8/01), EX-(CAL)/(AAL), (PSS) LSD 2001-02. 49440 RTND 2002-11.

1 MD-82 (JT8D-219) (1754-49931, /90 27 23 N821RA; 6-49932, /90 27 23 2), EX-(MID), (DEA) LSD 2002-02. 49932 RTND 2002-11.

0 MD-83 (JT8D-219) (1581-49846, N131NJ), EX-(ACH), (PSS) LSD 2001-05, RTND 2002-11. LST (AEG).

1 MD-87 (1674-49780, N132NJ), EX-(AAL), (PSS) LSD 2001-06.

0 MD-87 (1621-49727, N755RA), (DEA) LSD 2002-02, NTU.

Management:
(definitions)

ROBERT SPANE, CHAIRMAN (1997-06) ("ROCKY"), RESIGNED 2001-08.

JEFF POTTER, PRESIDENT & CHIEF EXECUTIVE OFFICER (CEO) (2000-05), 40, RESIGNS 2001-05 TO REJOIN (FRO) AS CEO.

SCOTT DICKSON, PRESIDENT, CEO, EX-(TAC) (2001-05) & CHAIRMAN.

MARK PETERSON, VP FLIGHT OPERATIONS.

RONALD MCCLELLAN, VP MAINTENANCE (2000-07), RESIGNS TO JOIN (FRO) (2002-01).

JIM MILLER, DIRECTOR ENGINEERING & QUALITY ASSURANCE (QA), EX-(TWA) (1998-08), ACTING VP, (jbmiller@flyvanguard.com).

JOHN MACVARISH, DIRECTOR MAINTENANCE (2000-07).

TIM HUFF, DIRECTOR QUALITY ASSURANCE (QA) & CHIEF INSPECTOR, EX-(CCE) (2001-05).

BILL BROWN, DIRECTOR SAFETY (bbrown@flyvanguard.com).

ROBERT CARROLL, MANAGER MAINTENANCE CONTROL.

DAVE MARTIN, BASE MAINTENANCE MANAGER.

WOODY DAWE, MANAGER MAINTENANCE CONTROL (2000-04).

RON LAURES, MANAGER PLANNING & MAINTENANCE PROGRAMS (1997-07).

JIM BROWN, SUPERVISOR PLANNING (1996-08).

 
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