Vanguard Airlines

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[[Image:Vanguard Airlines Logo|]]
Vanguard Airlines
IATA
NJ		 ICAO
VGD		 Callsign
Vanguard Air
Founded 1994
Hubs Kansas City International Airport
Focus cities / secondary hubs Midway Airport
Fleet size 13 + 2
Destinations 17
Parent company Vanguard Airlines, Inc.
Headquarters Kansas City, Missouri
Key people "Rocky" Spane ( Long-time CEO), Jeff Potter ( CEO), Scott Dickson ( Last CEO)
Website:

Vanguard Airlines was an airline based out of Kansas City, Missouri. For a time, Vanguard also had significant operations at Midway Airport, Chicago, Illinois, until late 2000. It ceased operations on July 29, 2002, after filing for bankruptcy. The airline flew leased Boeing 737s and MD-80 aircraft to several destinations from its main hub in Kansas City at the time of its demise. Vanguard Airlines started service in 1994.

Contents

[edit] History

[edit] Early History

Vanguard was originally started as a Low-cost, low-fare airline, the purpose of which was to undercut the costs of the major carriers and so be able to charge lower fares. Super-low regular advance fares of as little as $29 each way were the norm. Sale fares of as little as $10 were not uncommon. By the time Vanguard started, however, most major carriers had learned how to deal with such competition. They simply lowered prices in the markets where these smaller airlines flew, making it impossible for the Low-cost, low-fare airlines to make money.

A Vanguard Boeing 737 deicing at Denver International Airport. Deicing prevents ice build-up on flight surfaces, which can cause loss of control.
Enlarge
A Vanguard Boeing 737 deicing at Denver International Airport. Deicing prevents ice build-up on flight surfaces, which can cause loss of control.

[edit] Reinvention

In 2000, the airline began a program to change itself from a Low-cost, low-fare airline to the more sustainable Low-cost carrier model. This type of airline had lower costs than the major carriers, but competed on more than just price. Service, on-time performance, leg room, frequent flier programs, and other factors are often used in this competitive model. No longer were the cut-rate advance-purchase fares well-below the major carriers. Only the full-coach fares, which fewer customers buy, were significantly lower.

The change program worked and the airline saw significant improvements in operational and financial performance. The summer of 2001 saw some of the best growth and performance the airline had ever achieved; but the September 11, 2001 attacks changed all that. In October, 2001, the airline cut 20% of its staff. Full-time hourly workers were cut to as little as 32 hours per week. The executive suite took a 25% pay-cut. The airline struggled to compete in a market that saw schedules cut by a third and planes flying half-full.

[edit] Post 9/11

The following summer was bad for most airlines, but worse for Vanguard. While operational performance continued to improve to nearly summer 2001 levels, the airline was still saddled with $80 million in debt. Nervous about increased bookings, credit card processors required greater and greater assurances that they would not lose money if the airline failed. In his book about the bankruptcy of the airline, Scott Dickson, CEO, wrote how these processors required surety bonds of 125% of sales to continue processing credit cards. As each ticket was sold, the airline actually lost money. It was unsustainable and on July 29, 2002 the airline ceased operations.

[edit] Post Bankruptcy

When operations ceased, National Airlines, Frontier Airlines, and AirTran Airways immediately offered to take Vanguard passengers on a space-available basis. Controversy broke out with other airlines that had accepted Air Transportation Stabilization Board grants immediately following the September 11, 2001 attacks. One requirement of these grants was to accept passengers from airlines that ceased operations for a nominal fee. Some airlines refused and others charged higher fees than allowed under the law. Eventually, most passengers reached their destinations.

Not long after the bankruptcy, Robert H. Brooks, owner of Naturally Fresh, Hooters restaurants and PACE Aviation, offered to purchase the airline. His offer was rejected and the company was eventually liquidated. Its headquarters became the offices of the Transportation Security Administration in Kansas City.

[edit] Former Destinations

[edit] Fleet

[edit] Historical Fleet

Vanguard's fleet consisted of the following aircraft:

[edit] Final Fleet

When the airline ceased operations in 2002, its fleet consisted of 1 MD-81, 3 MD-82, 1 MD-83, 2 MD-87, and 6 737-200. The airline also wet-leased two TransMeridian 727-200.

[edit] External Links

[edit] References

Dickson, Scott & Sumner, Tracy (2004). Never Give Up: Seven Principles for Christian Leaders in Tough Times. Uhrichsville, Ohio: Barbour Publishing, Inc. ISBN 1-59310-144-9.

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