Friday, April 16, 1999
Vanguard in for the long haul
Airline competes on price
BY LISA BIANK FASIG
The Cincinnati Enquirer
On this, its second trip into the Greater Cincinnati aviation market, low-priced carrier Vanguard Airlines expects to fly right.
The airline that pulled out of Cincinnati/Northern Kentucky International Airport in 1996 after two months says better management and planning will allow it to compete in this tough airline market.
Thursday, Vanguard launched service from Cincinnati to Chicago Midway with four daily flights. From there, direct service carries to Kansas City, Minneapolis/St. Paul and Pittsburgh.
“It's based on military strategic ideas and discipline,” said Robert J. “Rocky” Spane, Vanguard's chief executive and a 33-year Navy veteran. “First of all, we look for business cities that are about 500 to 600 miles (away). Where Southwest doesn't fly. Where we can compete with the majors in some area.”
For example, Mr. Spane said Vanguard will offer jets where a competing airline might offer turboprops. In Cincinnati, Comair offers four daily flights to Midway, some on jets and some on turbo props, seating 30 to 50 people each.
Vanguard 737 jets seat 120, and are said to be roomier because two rows of seats have been pulled out.
But Vanguard's greatest attraction now is probably the low prices. Airlines like to enter new markets with major promotions, and through todayVanguard is booking cut-rate flights to Chicago of $19 one way. Tickets to Minneapolis are $39 one way. All flights must be booked 21 days in advance and require an overnight stay.
“Usually I fly on Delta, but sometimes it can be so expensive,” said Charlene Morse, president of the Cincinnati Symphony Association. Ms. Morse did not nab a $19 flight to Chicago Thursday; she booked a week in advance to pay about $250. Still, she said, she paid hundreds of dollars less than she would have elsewhere. “We would have driven,” she said.
Mr. Spane said the low fares usually double ridership and boost interest during the airline's important early days in a new market. Unplanned flights, usually among business travelers, are more expensive and help offset the discounts.
It is necessary that Van guard maintain this balance. In 1998 the airline's net loss of $1.5 million was the smallest in its history, and it earned its first operating profit ever, also $1.5 million.
“Without us your prices will go right back where they were,” Mr. Spane told travelers at Gate 19 of the airport's Concourse A, from where the maiden flight took off.
In its last Cincinnati/Northern Kentucky go-around, Vanguard blamed its rapid retreat on American Airlines, which almost simultaneously expanded service between Cincinnati and Dallas-Fort Worth. Vanguard had hoped to capitalize on that route.
But other airlines will still fight to retain their market, not only with prices but with convenience and service.
“As with any market, we intend to remain competitive,” said Meghan Glynn, director of corporate communications at Comair. She pointed out that Comair's weekend traveler fares have consistently offered $150 round-trips for 10 years.
Delta, American and United fly between Cincinnati and Chicago's O'Hare International Airport. The three airlines combined offer almost 2,000 daily seats to the Windy City.
On Thursday, many of the first-time Vanguard flyers were fun-seekers taking advantage of cheap fares or free prizes. Linda Molenda, who flew in from Chicago to attend her daughter DeDe's wedding, said the seats were roomy. She didn't try the cookies.
Diana and Jerry Hurd of Anderson Township won tickets through a Channel 19 giveaway. Decked in Reds gear, they were going to see their team play the Cubs.
“It will be nice just to go shopping,” Mrs. Hurd said of the discount fares. “The big Mall of America, you can go up there.”
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