Around a year later than originally planned the long-awaited return of the famous PEOPLExpress brand to the US domestic market has taken a big step closer to becoming a reality after it was revealed by the start-up’s management that an agreement has now been reached to acquire an existing airline that will provide the operating permits it required for its scheduled launch.
The carrier plans to launch operations from Newport News / Williamsburg International Airport serving many of the markets previously flown by the carrier of the same name back in the 1980s prior to it becoming absorbed into Continental Airlines. With a mission to serve markets currently underserved by major carriers, PEOPLExpress said last year during its public unveiling that it would offer deeply discounted fares to select cities in the eastern US initially from Newport News / Williamsburg International Airport, but potentially from other locations across the US.
The original plan was to operate as a virtual airline on the Air Operators Certificate (AOC) of an established venture with a goal to “make flying fun again,” but due to unknown circumstances was forced to defer the launch of the business by almost a year as business targets changed.
“We have a firm purchase agreement to acquire an existing certificated airline that will serve as a solid foundation for the launch of our scheduled model. We expect to finalise that acquisition over the coming weeks and will make an announcement as soon as we can. This is a very complex process that has significant financial and regulatory implications.”
Mike Morisi
President, PEOPLExpress
However, Mike Morisi, President, PEOPLExpress has now confirmed that agreements are now in place for the carrier to take the next steps towards operational launch. “We have a firm purchase agreement to acquire an existing certificated airline that will serve as a solid foundation for the launch of our scheduled model,” he said in a post on one of the carrier’s social media platforms. “We expect to finalise that acquisition over the coming weeks and will make an announcement as soon as we can. This is a very complex process that has significant financial and regulatory implications,” he added.
Based on this latest announcement PEOPLExpress could launch operations later this summer and is expected to initially start with up to four aircraft but has a business plan to expand to around ten units in the short-term. Although its network has not been officially announced, the carrier’s management has highlighted Pittsburgh, PA, Providence, RI, West Palm Beach, FL and Newark, NJ, as potential markets. It says opportunities exist in these locations as airline consolidation over the past few years has led to a reduction of non-stop air service.
The legacy namesake of the new PEOPLExpress operated in the United States from 1981 to 1987, and was at one time the fifth largest domestic airline with flights to most major US cities, as well as select European destinations. The original PEOPLExpress changed the face of the airline industry in the 1980s, and the revived brand vows to re-ignite the brand’s unique spirit of innovation to address today’s market needs.
Newport News / Williamsburg International Airport is currently served by Allegiant Air, Delta Air Lines, Frontier Airlines and US Airways. AirTran Airways also previously served the airport up until last year but the closure of its routes in spring 2012 has resulted in a significant decline in passenger numbers at the facility with traffic down over a third on the previous year.
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