New People Express hopes people remember name
— -- People Express may fly again.
Investors are seeking government approval for a new People Express Airlines that would carry the same name as the popular 1980s airline.
The original is considered to be the first no-frills carrier.
It quickly became one of the biggest airlines in the U.S. before it was folded into Continental.
"The brand is iconic, and what people know and remember about it is low fares, great service and high frequency into markets that didn't have existing service," says Mike Morisi, the start-up's president and COO. "I think what we've identified is an opportunity to replicate that again."
Morisi, who worked at the old People Express, emphasized that the airline will be a new company using the PEOPLExpress brand, not a re-start of the original airline
The goal for the start-up, which is based in Newport News, Va., is to launch service by the end of summer to several cities in the Northeast and Florida, including Pittsburgh, Providence and West Palm Beach, Fla.
But this won't be your parent's People Express.
Rather than repeat the fees and no-frills service that the first People Express pioneered and that other carriers have since copied, the new namesake plans to let fliers check their bags for free and get complimentary snacks on board.
But the new People Express is trying to take flight at a time that megamergers of the industry's biggest carriers threatens to quash competition. It's also a time many smaller carriers are struggling. Direct Air and regional carrier Pinnacle Airlines filed for bankruptcy protection in recent weeks.
"It will be very difficult for them, but it's very difficult for any airline to start up and succeed," says Henry Harteveldt, a travel industry analyst.
Paperwork first
People Express applied last month to the Transportation Department to become a commercial carrier. It also needs certification from the Federal Aviation Administration. And though People Express is backed by private investors, there likely will be a public offering to fuel future financing, says William Mayer, chairman of the budding airline's board.
If approvals and funding fall into place, People Express thinks it can be more efficient than big airlines and fill a void left by carriers that have left some cities for more profitable routes. "I think the public is ready for the opportunity to get on a big comfortable jet at a fare that's significantly lower than anything being offered today," Morisi says.
Some airports are rolling out the welcome mat.
JoAnn Jenny, spokeswoman for the Allegheny County Airport Authority, which oversees Pittsburgh International, says it plans to enter into an agreement with People Express once the airline gets its FAA certification. Pittsburgh is no longer a hub for US Airways. While low-cost carriers such as JetBlue and Southwest have moved in, Jenny says, a need remains for flights to other cities.
Florida's Lakeland Linder Regional Airport, which lies between Tampa and Orlando, is prepared to waive fees for two years if People Express will start flying from there, says airport director Gene Conrad.
It was the same package the airport offered Direct Air, a small public charter airline that started Lakeland's first commercial air service in June. But in March, Direct Air stopped operating. Now, Conrad says, "we're looking aggressively to get someone back in there."
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