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Hooters continues to eye airline
Restaurant chain known for selling sex appeal asks for 3 more weeks to look at Vanguard's books.
September 3, 2002: 5:00 PM EDT

NEW YORK (CNN/Money) - Talks are continuing between bankrupt Vanguard Airlines and restaurant chain Hooters of America, but even if the chain does buy the Kansas City-based air carrier, don't expect to see tight t-shirts and shorts on the flight attendants, or most other employees.

The Hooters restaurant chain is known for selling the sex appeal of its waitresses along with its casual food. But Mike McNeil, the vice president of marketing for the privately-held restaurant chain, said that kind of extension of the Hooters brand to the airline isn't likely, even if the current talks and due diligence produce a deal.

"I don't think that we would really spend a long time analyzing that," when asked if in-flight staff would be dressed like Hooters' staff. "I think the discussion is how do you interject the Hooters concept around the perimeter rather than take it over completely." He said it's more likely that a few customer service employees on the ground would be attired in a typical Hooters outfit than those staff on the planes.

McNeil said it's possible that the Hooters name won't even be attached in any way to the new airline, that all it might share with the chain is common ownership.

"One of the things we're studying is to what extent does it make sense to take a restaurant brand known for fun and good times, and try to extend it into a business where safety, reliability and conservatism are the things people think about when making a decision to fly," he said.

Vanguard pilot Arv Taylor, president of the pilots union at Vanguard said he and other Vanguard employees would welcome Hooters and its chairman Robert Brooks buying the bankrupt carrier.

"Someone has to be out there providing safe, efficient transportation to keep the big airlines honest. It doesn't matter where it comes from as long as it's a legal source," Taylor said. "I'm sure that it's going to be run properly, not where flight attendants will be flying wearing typical Hooters outfits. If you look at what this man (Brooks) has done, it's always been smart, been profitable and been done the right way."

Attorneys for both Vanguard and Hooters will be in bankruptcy court in Kansas City Wednesday asking the judge for permission to extend interim funding of 10 Vanguard staff members for another three weeks. The chain has already given the airline $50,000 a week for the last three weeks while it looks at the books and details on business plans and profitability of different routes. It is asking permission to extend that funding another three weeks at $57,500.

"That means the answer is not, 'No thank you, we're not interested,'" said McNeil. "The first step is to assess if there's a desire to get in this business, what it's going to take to get these guys back up in the air, trying to understand the business, because quite frankly we don't understand it very well yet."

McNeil said a decision will be made on the economics of the carrier before any serious discussion is held on how to apply the Hooters brand to the carrier.

Vanguard halted operations July 30 after its request for a federal loan guarantee was denied. The carrier had 1,100 employees at that time, and is down to 29 today, including the 10 being funded by Hooters, and another 19 working towards a possible liquidation of the carrier.

Vanguard is one of two carriers to halt operations since the Sept. 11 terrorist attack. The other is Midway Airlines, which was already operating under bankruptcy court protection at that time. But most major airlines have also struggled with losses due to weak demand for air travel and fares since the terrorist attack.  Top of page




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.