Hello from bizjournals.com! David Mueller (davidm@smail.info) thought you might like the following article from The Business Journal: http://www.bizjournals.com/industries/travel/airlines_airports/2002/09/30/triad_story5.html Hooters executive to buy Pace Airlines of Winston-Salem Matt Evans The Business Journal ------------------------------------------------------------ WINSTON-SALEM — Piedmont Hawthorne Aviation of Winston-Salem will sell its Pace Airlines division to a group headed by Hooters of America Inc. Chairman Robert Brooks, according to Piedmont Hawthorne officials. The sale will proceed despite news Sept. 25 that the board of directors of Vanguard Airlines of Kansas City rejected Brooks' group's offer to purchase the bankrupt commercial carrier. The sale of the charter airline is a "straightforward acquisition" that was never necessarily dependent on the Vanguard transaction, said Piedmont Hawthorne President Dean Harton. "In fact, this is probably going to make the whole thing simpler and more straightforward" than a deal coinciding with a separate airline purchase. "It's always simpler when there's only one thing involved rather than two." Specific details of the transaction were unavailable at press time. Brooks, owner of the national sports bar and restaurant chain, was not available to comment. But the company hinted last week when announcing its offer for Vanguard that it was in the market for experienced airline management. Much of Pace's executive team has been together since the days of Piedmont Airlines in the late 1980s. That airline was founded and based in Winston-Salem before it was bought out by US Air in 1988. Pace Airlines CEO Darrell Richardson said that while the deal is still subject to change, his understanding is that Pace will not change its name and will remain a charter service. It would keep its headquarters in Winston-Salem and would not lose any of its 200 local employees, he said. The current Pace management team would continue to run the operation of 18 jets and 300 total employees nationwide. "We're looking at providing more and more jobs to the community here," Richardson said. Harton said Piedmont Hawthorne was interested in selling its charter airline division primarily because it had outgrown its parent company. Initially designed to serve just the sports team and "VIP" jet markets, Pace's business is now 80 percent scheduled charter flights, Harton said. "It's just a totally different mindset operating an airline which carries high-density, high-frequency flights," he said. "It gets to the point that running an airline isn't worth it." Harton said Piedmont Hawthorne may keep a minority interest in Pace, or work out a partnership to allow Piedmont Hawthorne to continue providing customers for the airline. Richardson said Pace Airlines has seen rapid growth recently, from four planes operating in 2000 to 18 today. The growth has continued this year with two new clients in the charter vacation business, which Richardson said has been less affected by the airline industry crisis since last Sept. 11. Colorado-based airline industry analyst Michael Boyd couldn't say for sure why Brooks would want to get into the airline industry when overall conditions are so difficult. Brooks may make another bid for Vanguard or seek another commercial carrier to purchase along with Pace, and Boyd said there is an opening for him — the major carriers are vulnerable because tight budgets and new restrictions are making a lot of their customers unhappy, he said. "If this new airline would be consumer friendly, like Southwest or Midwest Express is, it's a home run," Boyd said. Copyright(c) American City Business Journals Inc. All rights reserved. You can view this article on the web at: http://www.bizjournals.com/industries/travel/airlines_airports/2002/09/30/triad_story5.html