SECURITIES AND EXCHANGE COMMISSION
                  WASHINGTON, D.C.  20549


                         FORM 8-K

                      CURRENT REPORT


          PURSUANT TO SECTION 13 OR 15(D) OF
          THE SECURITIES EXCHANGE ACT OF 1934



Date of Report                         February 15, 2001
(Date of earliest event reported)     (February 14, 2001)



                    VANGUARD AIRLINES, INC
    (Exact name of registrant as specified in its charter)



DELAWARE     (State or other jurisdiction of incorporation)
0-27034     (Commission File Number)
48-1149290  (I.R.S. Employer Identification No.)



                    533 Mexico City Avenue
               Kansas City International Airport
                    Kansas City, MO  64153
  (Address of principal executive offices including zip code)



Registrant's telephone number,
including area code (816) 243-2100






</PAGE>
     <PAGE>
ITEM 5.  OTHER EVENTS.

     Vanguard Airlines, Inc. (the "Company") issued a press
release on February 14, 2001, a copy of which is attached hereto
as Exhibit 99 and is incorporated herein by reference, announcing
that the Company had issued to obtain renewal letters of credit
aggregating $4 million that secure the financial institution that
processes the Company's credit card receivables.

ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS.

(c)  EXHIBITS.  The following Exhibits are filed with this
report:

EXHIBIT NO.    DESCRIPTION

  99     Press Release issued February 14, 2001.


SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.




                              VANGUARD AIRLINES, INC.




                              /s/ Robert M. Rowen
                              By:  Robert M. Rowen
                              Vice President and General Counsel

Date:          February 15, 2001





</PAGE>
<PAGE>



FOR IMMEDIATE RELEASE
FEBRUARY 14, 2001

     CONTACT:  Alan Carr
     816-243-2136

acarr@flyvanguard.com
VANGUARD AIRLINES ISSUES
WARRANTS TO OBTAIN LETTER OF CREDIT

Kansas City, MO-- Vanguard Airlines, Inc. (the "Company" or
"Vanguard") (NasdaqSC: VNGD) reported today that the Company
obtained renewal letters of credit aggregating $4 million that
secure the financial institution that processes the Company's
credit card receivables.

In consideration for the extension of the letters of credit, the
Company issued to J. F. Shea Co., Inc. and The Hambrecht 1980
Revocable Trust warrants to purchase up to 4,000,000 shares of
the Company's Common Stock.  Warrants to purchase 800,000 shares
are immediately vested.  The remaining warrants vest over a two-
year period based on the amount of exposure backed by the letters
of credit.

The exercise price for the warrants is $1.17 per share and the
warrants expire on February 13, 2008.  The warrants contain anti-
dilution protection requiring an adjustment of the exercise price
upon certain events.

Kansas City-based Vanguard Airlines, which began service in
December 1994, is a value-priced, 100 percent ticketless
passenger airline. The airline provides convenient all-jet
service to 15 cities: Atlanta, Austin, Buffalo/Niagara Falls,
Chicago-Midway, Dallas/Ft. Worth, Denver, Kansas City, Las Vegas
(beginning April 1), Los Angeles, Minneapolis/St. Paul, Myrtle
Beach, New Orleans, New York-LaGuardia, Pittsburgh and San
Francisco (beginning April 1). The Company employs approximately
950 full-time equivalent employees and currently operates a fleet
of 13 Boeing 737s. For more information, visit the Company's Web
site at WWW.FLYVANGUARD.COM.

This press release contains forward-looking statements that
involve risks and uncertainties. Such forward-looking statements
are made based on management's belief, as well as assumptions
made by, and information currently available to, management
pursuant to the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. Further information on
such risks and uncertainties that could affect the Company's
financial results are included in the Company's filings with the
Securities and Exchange Commission, including the Form 10-K for
the year ended December 31, 1999, and in subsequent filings filed
with the Securities and Exchange Commission.
[{"type": "8-K", "sequence": "1", "filename": "0001.txt", "secsgml_size_bytes": 4359}]
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SECURITIES AND EXCHANGE COMMISSION
                  WASHINGTON, D.C.  20549

                         FORM 8-K

                      CURRENT REPORT

          PURSUANT TO SECTION 13 OR 15(D) OF
          THE SECURITIES EXCHANGE ACT OF 1934

Date of Report                         February 15, 2001
(Date of earliest event reported)     (February 14, 2001)

                    VANGUARD AIRLINES, INC
    (Exact name of registrant as specified in its charter)

DELAWARE     (State or other jurisdiction of incorporation)
0-27034     (Commission File Number)
48-1149290  (I.R.S. Employer Identification No.)

                    533 Mexico City Avenue
               Kansas City International Airport
                    Kansas City, MO  64153
  (Address of principal executive offices including zip code)

Registrant's telephone number,
including area code (816) 243-2100
ITEM 5.  OTHER EVENTS.

     Vanguard Airlines, Inc. (the "Company") issued a press
release on February 14, 2001, a copy of which is attached hereto
as Exhibit 99 and is incorporated herein by reference, announcing
that the Company had issued to obtain renewal letters of credit
aggregating $4 million that secure the financial institution that
processes the Company's credit card receivables.

ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS.

(c)  EXHIBITS.  The following Exhibits are filed with this
report:

EXHIBIT NO.    DESCRIPTION

  99     Press Release issued February 14, 2001.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.

                              VANGUARD AIRLINES, INC.

                              /s/ Robert M. Rowen
                              By:  Robert M. Rowen
                              Vice President and General Counsel

Date:          February 15, 2001
FOR IMMEDIATE RELEASE
FEBRUARY 14, 2001

     CONTACT:  Alan Carr
     816-243-2136

acarr@flyvanguard.com
VANGUARD AIRLINES ISSUES
WARRANTS TO OBTAIN LETTER OF CREDIT

Kansas City, MO-- Vanguard Airlines, Inc. (the "Company" or
"Vanguard") (NasdaqSC: VNGD) reported today that the Company
obtained renewal letters of credit aggregating $4 million that
secure the financial institution that processes the Company's
credit card receivables.

In consideration for the extension of the letters of credit, the
Company issued to J. F. Shea Co., Inc. and The Hambrecht 1980
Revocable Trust warrants to purchase up to 4,000,000 shares of
the Company's Common Stock.  Warrants to purchase 800,000 shares
are immediately vested.  The remaining warrants vest over a two-
year period based on the amount of exposure backed by the letters
of credit.

The exercise price for the warrants is $1.17 per share and the
warrants expire on February 13, 2008.  The warrants contain anti-
dilution protection requiring an adjustment of the exercise price
upon certain events.

Kansas City-based Vanguard Airlines, which began service in
December 1994, is a value-priced, 100 percent ticketless
passenger airline. The airline provides convenient all-jet
service to 15 cities: Atlanta, Austin, Buffalo/Niagara Falls,
Chicago-Midway, Dallas/Ft. Worth, Denver, Kansas City, Las Vegas
(beginning April 1), Los Angeles, Minneapolis/St. Paul, Myrtle
Beach, New Orleans, New York-LaGuardia, Pittsburgh and San
Francisco (beginning April 1). The Company employs approximately
950 full-time equivalent employees and currently operates a fleet
of 13 Boeing 737s. For more information, visit the Company's Web
site at WWW.FLYVANGUARD.COM.

This press release contains forward-looking statements that
involve risks and uncertainties. Such forward-looking statements
are made based on management's belief, as well as assumptions
made by, and information currently available to, management
pursuant to the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. Further information on
such risks and uncertainties that could affect the Company's
financial results are included in the Company's filings with the
Securities and Exchange Commission, including the Form 10-K for
the year ended December 31, 1999, and in subsequent filings filed
with the Securities and Exchange Commission.