NYTimes.com Article: Hooters Buys a Regional Airline

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Hooters Buys a Regional Airline

December 27, 2002
By REUTERS






ATLANTA, Dec. 26 (Reuters) - After months of trying to get
into the airline business, a company owned by the chairman
of Hooters of America has acquired Pace Airlines, a small
regional carrier based in Winston-Salem, N.C., Hooters said
today.

Robert H. Brooks, chairman of the Hooters restaurant chain,
said in a statement that he planned to establish a charter
air service called Hooters Air to serve leisure travelers.
He intends to work with tour operators to provide air
service for the golf and sports industries. A prime
destination will be Myrtle Beach, S.C.

Hooters of America, which is privately held and based in
Atlanta, said it had not determined exactly how the Hooters
brand name would be used in the airline operation.

A Hooters spokesman was not immediately available for
comment.

Mr. Brooks has said he envisioned using the airline to
promote the 310 Hooters restaurants and using the
restaurants to tout the new airline.

Mr. Brooks said he had kept looking for opportunities in
the airline business after Vanguard Airlines, which is
bankrupt, rejected a Hooters offer for its assets in
September.

"While things did not work out with Vanguard, I learned
through my due diligence efforts that the charter service
segment is a healthier business arena and much better
suited for extending the Hooters brand," Mr. Brooks said in
the statement.

Pace was formed by the management of the former Piedmont
Airlines following USAir Group's acquisition of Piedmont's
commercial operation in 1989. It currently operates 17
planes - 15 Boeing 737's and two Boeing 757's - providing
charter air services for various sports teams and corporate
clients.

Hooters did not disclose the terms of the Pace acquisition
or give details on when the Hooters Air charter service
would begin.

http://www.nytimes.com/2002/12/27/business/27HOOT.html?ex=1041996562&ei=1&en=9eecf8f825a8af99



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