BY MIKE BOYER
The Cincinnati Enquirer
Vanguard Airlines, the low-fare carrier that dropped Cincinnati service after only two months in 1996, says it might re-establish service here if proposed federal rules limiting competitive practices by major carriers are adopted.
The Department of Transportation Monday proposed fines of up to $1,100 a day for each violation for major carriers that add seating capacity or lower fares with the aim of driving smaller carriers out of markets where they compete.
The DOT, which is seeking comment on the proposals for 60 days, said it wasn't attempting to re-regulate the industry but ''proposing a set of guidelines on unfair competitive practices.''
Lynne McAdoo, a spokeswoman for Kansas City-based Vanguard Airlines, one of three smaller carriers that started and then ended service to the Cincinnati/Northern Kentucky International Airport in recent years, said Tuesday that her airline might consider resuming service.
Delta Air Lines, which operates its second-largest hub here and controls about 9 out 10 passenger boardings, has been a frequent target of air traveler ire because fares here are ranked among the nation's highest. Delta says that's because of the airport's large number of non-stop flights.
Vanguard's problem wasn't with Delta, but with American Airlines.
After ending service between Dallas and Cincinnati, Vanguard filed an informal complaint with the DOT, alleging that American Airlines had increased its flights on that route simply to drive Vanguard out of the market.
A spokeswoman for Fort Worth, Texas-based American said she couldn't respond Tuesday to Vanguard's charge.
Ms. McAdoo said Cincinnati is one of several cities where Vanguard might consider adding service if the rules are implemented.
''Cincinnati is one of the markets mentioned in our complaint against American,'' she said. ''It is one of the cities we've looked at.''
The proposed rules wouldn't make a difference for at least two other small airlines that made unsuccessful forays into Cincinnati.
Air Canada stopped offering service between Toronto and Cincinnati March 27 -- less than five months after the airline began offering the service.
Priscille LeBlanc, an Air Canada spokeswoman, said Delta didn't increase service or lower rates for the Toronto-Cincinnati route in response to competition.
Air Canada pulled out because the airline just didn't pick up enough passengers in Cincinnati to make the route viable.
''It's very unlikely that the proposed regulation would have made any difference in our decision to discontinue the Toronto to Cincinnati route,'' she said. ''That route didn't live up to our expectations.''
AirTran Airways also pulled its flights out of Cincinnati recently. Lori LeRoy, an AirTran spokeswoman, said that decision was based on the company's strategy of focusing on smaller ''second-tier'' airports -- not problems with anti-competitive practices at the metropolitan Cincinnati airport.
Ted Bushelman, airport spokesman, said it isn't predatory practices but fickle travelers who undercut the low-fare carriers.
''What typically happens is when the (large) airlines lower their fares to match the (low-fare) competition, people tend to fly the larger carriers because they offer frequent-flier miles and more direct flights.''
Ray Neidl, airline analyst with the investment firm of Furman Selz, said it was difficult for any smaller to crack a hub dominated by a major carrier.
''They offer too many flights and too many perks,'' he said.
