KANSAS CITY, Mo. - Vanguard Airlines suspended operations Tuesday, saying it would lay off almost all of its employees and file for Chapter 11 bankruptcy organization.

        The Kansas City-based discount carrier has never shown an annual profit in eight years of operation. A recorded announcement on its reservation line early Tuesday said all Tuesday and Wednesday flights had been canceled and all other flights scheduled after that have been suspended indefinitely.

        “The company is seeking funds in order to resume operations,” the announcement said. “The company intends to file for protection under Chapter 11 of the Federal Bankruptcy Code.”

        By Tuesday, Vanguard's gates at Kansas City International Airport were deserted except for media and security guards. A few Vanguard managers were there with fliers to explain the decision to any potential customers.

        Vanguard twice attempted to establish operations at Cincinnati/Northern Kentucky International Airport — for less than two months in 1996, then again for about 11 months in 1999-2000.

        The Air Transportation Stabilization Board announced Tuesday it had rejected a request that the federal government guarantee an $8 million loan for Vanguard. The board said the airline's “proposal did not provide a reasonable assurance that Vanguard will be able to repay the loan.”

        Nearly 1,100 employees, including about 915 in Kansas City, will be terminated before the Chapter 11 filing.

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