NORFOLK, va. — The name PeoplExpress conjures thoughts of cheap fares, packed planes and bare-bones service.
If regulators agree, the name will be back this summer, attached to an airline that hopes to borrow from the old playbook while avoiding some of the mistakes that doomed one of the pioneers of the no-frills airline business.
PeoplExpress Airlines announced Monday that it will be headquartered at Newport News-Williamsburg International Airport in southeastern Virginia. It plans to offer East Coast flights this summer. But a successful launch is far from a sure thing. It still needs approval from the U.S. government. And it still needs to secure financing.
Initial destinations are expected to be Pittsburgh; Newark, N.J.; and West Palm Beach, Fla. Chief operating officer Michael Morisi, who worked at the original airline, says the airline won’t fly to large cities served by other airlines. The original PeoplExpress called overexpansion one of its fatal mistakes. At the time, Morisi was responsible for opening up several domestic and international destinations.
The old PeoplExpress, once the fifth-largest U.S. airline, flew from 1981 to 1987 and was known for offering fares as low as $19 while turning a profit. But once American introduced “Ultimate Super Saver” fares in 1985, the airline struggled. Continental Airlines eventually swallowed it up. Since then, more than 100 airlines have filed for bankruptcy or stopped operating.
Morisi said he intends to serve niche markets that are underserved or those that have lost service altogether because of industry consolidation. A number of bigger airlines have pulled out of smaller markets since the recession because flying at those places wasn’t profitable.
“I think we can build a very nice operation serving dozens of cities and never really encroach on some of the major hub cities that other carriers are dominant in,” he said.
Southwest, which flies more passengers than any other airline, is also an influence: PeoplExpress said it won’t charge for checked bags. It plans to buy only Boeing 737s — just like the original PeoplExpress did — to keep maintenance costs low. That was Southwest’s only plane until it bought AirTran last year.
