How long will Vanguard last?

 
Old Jun 19, 00, 10:52 pm
  #1  
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Join Date: Jun 2000
Location: emporia, ks
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How long will Vanguard last?

I just read where a large Minneapolis travel agency had made anybody buying a Vanguard ticket to hold them harmless if Vanguard went belly up. The report said that they had now suspended that action, but it had been based on the fact that Vanguard lost something like $5 million in the last quarter...and apparently has been losing for sometime.

I have several segments on my "self-tracking" form...but I wouldn't put much stock in the airline being around to use them.

Armand
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Old Jun 24, 00, 11:39 am
  #2  
 
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They had six consecutive quarters of (small) profits, but followed that up with two quarters of losses more recently, including the $5 million loss you site. They have also receivied a "going concern" letter from their accountants which is never a good sign.

However, Vanguard has made some moves recently that could help it survive. It cut service to least profitable (well, most unprofitable) city, Cincinnati, and have raised the fares which should help it become profitable again. Of course it may drive away some passengers.

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Old Jun 24, 00, 6:55 pm
  #3  
 
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i saw on news.yahoo.com that vanguard started new orleans service... is this just for utalization of the planes or is this really a expantion?
Jason
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Old Jun 25, 00, 2:04 pm
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New Orleans is really an expansion. According to our local paper, MSY is the 7th most popular destination out of MCI, yet there are no existing nonstops MCI-MSY. They have leased more planes recently (and stopped Cincinnati service), so this may be in part a move to utilize planes better, but they have also started nonstop DEN-MDW service as well as increased frequency on other routes. It looks like a smart move, though it will be interesting to see if Southwest reponds with non-stop service of their own since they're big in both cities.
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