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PEOPLExpress, famous for offering cheap travel options, including cheap airplane tickets and cheap vacation packages 25 years ago, hopes to start flying again by summer. PEOPLExpress was well known as a no frills airline that operated from 1981 to 1987 when it was purchased by Continental. One of the reasons the original airline went out of business was because it expanded into large markets such as London and Los Angeles where it faced much greater competition. This time around the airline will be flying to markets underserved by other airlines and destinations where no other airlines fly. PEOPLExpress believes that its lower prices will stimulate demand in such markets. Its timing is auspicious in that Southwest Airlines, which recently merged with AirTran, is in the process of reducing and in some cases eliminating the amount of service AirTran used to offer to many smaller markets PEOPLExpress is looking at. The airline hopes to use Newport News/Williamsburg International Airport in Virginia as its hub. Only short haul flights of no more than two and a half hours using Boeing 737 aircraft are planned. Initially PEOPLexpress wants to focus on Florida, New England, the Great Lakes and Mid-Atlantic regions. Specific cities are expected to include Boston, MA, Orlando, FL, Pittsburg, PA, Providence, RI, and West Palm Beach, FL. Ticket prices may be as cheap as $69 one way and will include two checked bags as well as seat assignments. Its 158 seat planes will consist of a single cabin, but offer more comfortable seats towards the front of the plane that come with priority boarding at premium prices targeted to appeal to business travelers. The airlines launch date is not set yet since it is waiting for approval from the Federal Aviation Administration and the Department of Transportation and needs to secure a final round of financing.
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