Fifth Third Bank, which made a name for itself in the credit card world three years ago with its Kroger MasterCard, now has a new program that it thinks can fly.
The Cincinnati-based bank is issuing the Plane & Pilot Visa card, a no- fee card aimed at 120,000 pilots who own their own planes. The card comes with a 10.25% interest rate through July, rising subsequently to prime plus 8.9%.
Plane & Pilot, a magazine published in Los Angeles, will advertise the cobranded card beginning with its December edition. The magazine reaches a worldwide audience of 110,000 pilots, according to Michael McMann, associate publisher.
Daniel Page, chief executive of National Affinity Cards, a firm in Boulder, Colo., called it a "niche audience that is likely to expand" because the ownership of private planes is making a comeback.
Mr. Page said people who own planes might be loyal to a colorful card featuring a small plane flying away from a sunset. And, he said, plane owners who carry the card would be less likely to defect to the most competitive cards on the market - those targeting frequent fliers.
Mr. McMann described the plane owners and readers of his magazine as affluent men who travel frequently and like to spend money on aviation tools and gadgets.
The bank, the magazine, and Marketing & Business Administrators Inc., which came up with the idea, have so far signed up seven merchants that will give the pilots discounts when they use the Plane & Pilot Visa card for purchases. They also added two enhancements aimed at the active general aviation pilot.
Cardholders can use it for long-distance telephone calls at a flat 18.9- cent rate.
Also, cardholders may join the SignatureCard Dining a la Card program, which pays them a 20% discount for all lodging, dining, beverage, tax, and tip charges during the first visit per month at participating merchants. This program has a $49.95 annual fee, waived for the first three months.
"We think some money can be made on this niche product," said Paul J. Novak Jr., vice president of credit card product management at Fifth Third. "The demographics were attractive to us."
