Pro Air Pursues New Contracts To Follow Chrysler, GM Deals

<B> Pro Air Pursues New Contracts To Follow Chrysler, GM Deals</B>

By Jay Campbell

Pro Air is pursuing 10 to 15 new agreements with companies that have "significant travel budgets and operations, with the same general model as Chrysler and GM of long-term contracts," said Eric Steinwinder, vice president of marketing and communications.

The Detroit-based start-up carrier last year signed Chrysler and GM to deals that provide the companies with unlimited travel for a fixed monthly fee (<I>BTN,</I> June 22, 1998). Steinwinder said the new agreements are good for five years, but wouldn't name the buyers. The airline also is eyeing a public offering later this year, following the placement of $30 million in private monies.

Pro Air in January added one flight a day from its base at Detroit City Airport to New York LaGuardia and four flights each weekday to Chicago Midway. Unrestricted fares between Detroit and Chicago Midway are $49 in coach, $124 in first class. To LaGuardia, the airline is charging $99 in coach, $174 in first.

The carrier now is serving eight cities with 108 weekly departures. It also owns four B737s and will add five more aircraft by year-end.

Pro Air recently told the Detroit Regional Chamber of Commerce and the Detroit City Council that it has saved area consumers more than $180 million on an average drop in fares of 53.8 percent since initiating service in July 1997.

The carrier said that in 1998 it increased traffic by 95 percent between Detroit and Baltimore, Indianapolis, Milwaukee and New York-Newark. Pro Air also said it has helped eliminate Saturday night stay and roundtrip travel restrictions on routes where it competes with other airlines.