ProAir to Fly GM, Chrysler Employees

Start-up airline ProAir Inc. reached tentative deals with General Motors Corp. and Chrysler Corp. to fly employees between Detroit and four Eastern cities, saving the auto makers up to $9 million, according to published reports.

The deals, which could be signed as early as today, would break Northwest Airlines’ near lock on corporate travel by GM and Chrysler employees in and out of Detroit.

Northwest is the largest carrier at Detroit Metropolitan Airport, which serves as a hub for the airline’s overseas and domestic destinations. But Northwest has been dogged by customer complaints about poor service--complaints aggravated by delays and other problems stemming from its dispute with several unions.

ProAir, founded 10 months ago, is based at Detroit City Airport.

GM expects to sign a five-year agreement under which ProAir will “provide transportation services to GM employees traveling between Detroit and Baltimore, Indianapolis, Newark and Philadelphia,” spokesman Peter Rowe told the Detroit Free Press.

Under terms of the tentative deal, GM and Chrysler will make undisclosed annual payments to ProAir for air travel by an estimated 25 to 40 employees daily, sources said.