PeoplExpress signs deal to get off the ground
Source: The Virginian-Pilot
PeoplExpress, a reincarnation of the cut-rate air carrier from the 1980s, said it bought Boise, Idaho-based XTRA Airways from TEM Enterprises. Terms weren't disclosed.
XTRA Airways' five Boeing 737's, which fly charter routes, were part of the deal, said Mike Morisi, president of Newport News-based PeoplExpress. He said though XTRA doesn't fly scheduled routes, it is FAA-certified to do so and that certification transferred to PeoplExpress. He said he hopes to announce a flight schedule and destinations soon.
"This is a great foundation for what we want to do," Morisi said.
Read more: http://hamptonroads.com/2013/06/peoplexpress-signs-deal-get-ground
Will be interesting to see if the PE low-cost model will still work in today's airline market.
itsrobert
(14,157 posts)badly maintained planes?
The Velveteen Ocelot
(115,806 posts)and their assets were purchased by another airline, I think Continental. You may be thinking of ValuJet, which did have a series of accidents and eventually became AirTran, which was recently merged into Southwest.
brooklynite
(94,679 posts)...becoming a transcontinental airline with plans to expand to Europe and Asia. They got caught by the reduction in airfares brought about by deregulation and couldn't pay the bills on their aircraft purchases.
Capt.Rocky300
(1,005 posts)DemoTex
(25,400 posts)Of course, the Frank Lorenzo airline business model was an epic FAIL, but it did set the stage for later evisceration of airline labor contracts and theft of airline employee pensions. The Bu$h-1 Department of Transportation, in fact, banned Lorenzo from any affiliation with the airline industry - for life. While I applauded that action by the Bu$h-1 administration, I never really trusted the "for life" provision.
Capt.Rocky300
(1,005 posts)refused to intervene on behalf of employees and stockholders when Lorenzo was taking Eastern Airlines down. But it was a long time ago and I've done my best to forget the name Frank Lorenzo.
valerief
(53,235 posts)Sheldon Cooper
(3,724 posts)IIRC, every flight, no matter where it started or ended, had to go through Newark NJ first.
brooklynite
(94,679 posts)Inconvenient for passengers, but very efficient for the airline. All their ground staff could be located in one area (they didn't keep staff at outlying cities; the air staff would get off the plane and handle everything) and they could maximize loads.
frazzled
(18,402 posts)when his People Express plane back to Buffalo from NYC got canceled one night. They put him up in the Newark airport motel or something, and I remember him calling me ... for the first time (and last I can remember) ... really upset. He said there was blood on the walls and someone kept trying to get into his room with a key. Oh, and pieces of the ceiling kept falling down on him. It was like the Bates Hotel, by his account.
Well, what do you want for $39 round trip? (I think that's what it was back in those days).
sdfernando
(4,937 posts)I spent a week one night at the Newark Peoples Distress terminal. Vowed never to visit that place again (not Newark but the airport).