Hunting The Predators

The government threatens to fine big airlines for trying to run low-priced competitors out of town

With only a pair of brand-new Boeing 737s sporting brightly colored orange-and-green tail fins, Pro Air Inc. is America's newest passenger airline. Launched in Detroit's City Airport last July by former Boeing lawyer Kevin Stamper, Pro Air offers fares as much as 85% less than giant Northwest Airlines' on comparable routes. Passengers flocked to Pro Air, but Northwest, which dominates traffic in Detroit, was not about to let Pro Air grab share. Northwest quickly cut prices and added seats to Pro Air destinations, including Baltimore, Md.; Newark, N.J.; and Indianapolis, Ind. Under this assault, Pro Air recently abandoned one of its...

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