- People Express Airlines
-
PEOPLExpress 
IATA
PEICAO
PEXCallsign
PEOPLEFounded 1981 Ceased operations 1987 (integrated into Continental Airlines) Hubs - Newark International Airport
- Stapleton International Airport
(Denver)
Focus cities Baltimore Washington International Airport Fleet size 75 Destinations 50 Parent company People Express Airlines, Inc. Headquarters Newark, New Jersey Key people Don Burr
(First CEO)
Beverly Lynn Burns
(First Woman Boeing 747 Airline Captain)People Express Airlines, stylized as PEOPLExpress, also known as People Express Travel, was a U.S. no-frills airline that operated from 1981 to 1987, when it merged into Continental Airlines. The airline's headquarters was in the North Terminal of Newark International Airport in Newark, New Jersey.
Contents
History
The company was founded by Don Burr, Samuel Leong Ken Yung, Gerry Gitner and several others, who resigned from Frank Lorenzo's Texas International in order to do so. Burr was influenced by British airline entrepreneur Freddie Laker, whose forays into low-cost air travel attracted much press in the 1970s. Terminal space was leased at Newark Airport's long-abandoned North Terminal.
People Express (PEx) was launched on April 30, 1981 with service from Newark to Buffalo, Columbus, and Norfolk, Virginia. People Express grew rapidly, adding flights to Florida by the end of the year.[1]
On May 26, 1983, People Express began non-stop service from Newark to London's Gatwick Airport with a leased Boeing 747-227B previously operated by Braniff International Airways. Flights were initially priced at $149 each way. The airline became an instant success with all flights sold out for several months within 24 hours of being offered. Later, the airline added Montréal-Mirabel and Brussels to their international network.
The airline used a simplified fare structure. All seats on a given route were offered at the same price, with slight differences between "peak" and "off-peak" fares. All seats were in economy class, with the exception of "Premium Class" seating on overseas flights. Fares were paid in cash aboard the aircraft early in the flight. Passengers were permitted to bring one carry-on bag for free, while each checked bag cost a fee of $3.00. People Express was the first United States airline to charge a fee for each checked bag. People Express also charged modest amounts for customers wanting food or beverages. Sodas cost 50 cents per can, honey-roasted peanuts and Rachel's brownies were also 50 cents, and the "famous" People Express "snak-pak" (an assortment of cheeses, crackers and salami) cost $2.
In 1985 People Express bought out Denver-based Frontier Airlines. The combined company became the United States' fifth largest airline, with flights to most major U.S. cities, as well as a transatlantic route to Brussels. During this period, People Express also purchased midwest commuter carrier Britt Airways and Provincetown-Boston Airlines (PBA), a regional airline with route networks in New England and Florida.
The aggressive purchasing spree placed an enormous debt burden on the carrier at the same time major legacy carriers' improved yield management schemes enabled them to better compete with People Express on fares. Integrating Frontier's operations caused labor struggles within the newly absorbed airline, and the change to a low-fare, no-frills mentality alienated Frontier's passengers.
Debt pressure on the carrier forced a change in philosophy, as People Express sought to lure business travellers who were willing to pay higher fares. Aircraft cabins were redesigned to include a first-class cabin, a frequent flyer plan was initiated, and the simplified fare structure was abandoned in favor of a more traditional airline industry "revenue management" pricing scheme.
The failed integration and enormous debt stretched People Express too far, and in June 1986, the company announced they were working with an investment bank to seek buyers for part, or all, of the airline. A deal to sell Frontier off to United Airlines fell through due to the inability of United to agree to terms with its unions on how to incorporate Frontier's staff, leading People Express management to cease Frontier's operations and file the subsidiary for bankruptcy protection.
In the end, People Express was forced to sell entirely to Texas Air Corporation for roughly $125 million in cash, notes, and assumed debt. Due to concerns about regulatory approval for the purchase, Texas Air purchased the assets of Frontier from People Express in a separate transaction worth $176 million. People Express ceased to exist as a carrier on February 1, 1987, when its operations were merged into the operations of Continental Airlines, another Texas Air subsidiary, under a joint marketing agreement.
People Express' spartan, no-frills service earned the carrier several derisive nicknames, including "People Distress" and "Air Bulgaria" (a sarcastic reference to the poor customer service associated with Eastern Bloc countries during the Cold War).[2]
Fleet
This was the fleet at the time of People Express's buy out from Continental Airlines.
People Express Fleet Aircraft Total Passengers
(First/Economy)Notes Boeing 727-200 50 185 Bought from Delta Air Lines, Braniff, Alitalia Boeing 737-100 17 118 Bought from Lufthansa Boeing 737-200 5 130 Bought from Canadian Pacific Airlines Boeing 747-100 3 435 Bought from Alitalia Boeing 747-200 6 435 Bought from Braniff, Alitalia, Qantas Headquarters
The PeopleExpress headquarters were on the grounds of Newark International Airport.[3] The headquarters offices, described by the Miami Herald as "a maze-like bevy of small offices," were in an attic,[4] located on the second floor of the North Terminal.[5][6] The North Terminal first opened in 1953.[7] Before the arrival of PeopleExpress, the terminal was largely unused, while it had some charter flights departing and arriving there.[8] After the end of PeopleExpress, the Department of Veterans Affairs used the former terminal as a transfer point for casualties in the Gulf War.[9] In 1997 a project to demolish the North Terminal and redevelop the land was underway, with a cost of $50.1 million.[10]
References
- ^ Norwood, Tom. Deregulation Knockouts: Round One.
- ^ "Leaders should beware of uncontrolled growth", Denver Business Journal. October 30, 2006. [1]." Retrieved on July 8, 2009.
- ^ "World Airline Directory." Flight International. March 30, 1985. 106." Retrieved on June 17, 2009.
- ^ "On the Cheap." Miami Herald. May 1, 1983. 1F Business. "Finding someone at People Express' headquarters is not always easy. The company occupies a maze-like bevy of small offices chipped out of the attic above a terminal building at Newark International Airport."
- ^ Kiefer, Francine. "At People Express the rush to profits never slows down." Christian Science Monitor. Monday December 19, 1983. 1. Retrieved on March 2, 2010. "Here on the second floor of the Newark International Airport, executives fly in and out of their tiny offices, cluster for a short while in the narrow hallway, and then suddenly disperse."
- ^ Jouzaitis, Carol. "Sky the limit for People Express." Chicago Tribune. June 17, 1984. Start Page G1, 2 pages. Retrieved on March 2, 2010. "A little more than three years ago, Newark International Airport's North Terminal was a dusty, dilapidated, rodent-infested shell, abandoned by the airlines for new facilities nearby."
- ^ "Slow Return as Hub for Aviation; After 67 Years, Newark's First Terminal Has New Life." The New York Times. April 27, 2002. B1, New York Edition. 2. Retrieved on March 2, 2010. "Ultimately, Building 51 was replaced by a new Newark terminal in 1953, which later became known as the North Terminal."
- ^ "PEOPLE EXPRESS LEASES UNFINISHED NEWARK AIRPORT TERMINAL." Associated Press at The New York Times. Sunday January 20, 1985. Late City Final Edition, Section 1, Page 36, Column 3. Retrieved on March 2, 2010. "People Express started operations in April 1981 in Newark Airport's North Terminal, which had been largely unused except for charter flights."
- ^ "VA LEASES N.J. TERMINAL FOR CASUALTIES." Associated Press. February 1, 1991. Retrieved on March 2, 2010.
- ^ Frank, Al. "New York, New Jersey Port Authorities Act On New Airport Facilities.(Originated from The Star-Ledger, Newark, N.J.)" Knight Ridder/Tribune Business News. March 21, 1997. Retrieved on August 27, 2010. "The hangars are located at the northern end of the 2,300-acre airport, where passenger operations were located until the present terminals opened in the 1970s. Another component of the northern area's redevelopment involves the demolition of the North Terminal and the construction of two air cargo terminals. That project, now underway, will cost $50.1 million."
External links
- The Airchive-People Express Timetables
- People Express' Model T
- Aviation Safety Network - People Express
- Remember PEOPLExpress?, The Article Writer, January 16, 2006
- The Rise and Fall of PEOPLExpress, Eric Kochneff, August 2004
- CP Air 737
- People Express Management Flight Simulator by Prof. John Sterman, MIT
- Airlinecolors.com Images, historical notes, and promotional materials
Categories:- 1987 disestablishments
- Airlines established in 1981
- Companies based in Newark, New Jersey
- Defunct airlines of the United States
- Defunct companies based in New Jersey
- Defunct low-cost airlines
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