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People Express May Fly Again

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  • People Express May Fly Again

    People Express as a brand is attempting a comeback, with leadership that includes a handful of the personnel employed during its previous iteration as a ground-breaking but overly ambitious low-cost carrier in the 1980s.

    The new venture aims to begin service as soon as this summer and its founders are talking to airlines and lessors about obtaining seven to 10 Boeing 737-400 aircraft by year-end.

    The goal this time around is to enter markets—primarily in the Eastern U.S.—where major carriers have scaled back or eliminated service because of mergers, consolidation, fuel price increases, high unit costs or financial troubles.

    People Express, which brands itself as PEOPLExpress, believes it can keep costs low enough to succeed in the markets, which may currently have very low frequency service, regional carrier-only service or no nonstop service at all, and do so without charging for items such as checked bags and assigned seats even with fares 40% lower than current rates.

    The new airline will be based at Newport News/Williamsburg International Airport in Newport News, Va., an airport served by the original Newark-based People Express and about to lose its service from AirTran Airways. It plans to focus on service to Florida, New England, the Great Lakes and the Mid-Atlantic.

    Initial destinations likely will include Pittsburgh, Pa., Providence, R.I., West Palm Beach, Fla., and Newark, N.J., and the carrier says it also has plans to serve Orlando and Boston. Pittsburgh is a potential “focus city.”

    The company expects to launch with 12 daily departures out of Newport News, growing to about 25 over the first few years, and has an agreement with the airport to use up to five gates.


  • #2
    I wish them the best of luck. It's such a sad state of affairs when the enthrall of 'free luggage', is a major selling point.

    That said, it's a smart move on their part as in short time, we will need the competition to combat the possible ills of the recent rounds of consolidation in the market.

    737-400s might be easier to acquire than, perhaps 737-700s, but their age, and necessary maintenance is going to be problematic. Unless, they've acquired a massive fuel hedge, I wonder how they plan to compete against any of their competitors, all of which have their niches carved, and their significant advantages.
    Whatever is necessary, is never unwise.

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    • #3
      The 737-400 is not problematic but simply far less expensive, either to lease or finance acquisition, than NG models. This would outweigh other costs, especially for start-ups.

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      • #4
        They can't think up another name?
        Flying is the second greatest thrill known to man. Landing is first.

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        • #5
          "People Express May Fly Again" - this should be interesting... I wonder how long this experiment will last...

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          • #6
            Probably like Pan Am... I don't want to write off another carrier even before it starts operating, but the industry situation still isn't good for new carriers. Why do you think there's so much consolidation going on? And old 734s aren't going to do it any good in today's market (for a carrier that's just starting up). But all the same, I wish it the best, hopefully we may get to see a modern-day rendition of People Express. I hope the old livery is kept, it would be pretty awesome.

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            • #7
              Yeah...I'll bet this will be just like the Bellingham, WA based "Western Airlines". I'd be surprised if they don't have Xtra or SkyKing or somebody "lend" them an airplane for them to sell tickets on.
              sigpic
              http://www.jetphotos.net/showphotos.php?userid=170

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