PeoplExpress, a Virginia-based startup carrier that is adopting the same name as the quirky, no-frills carrier of the 1980s, could be one step closer to takeoff, now that it has an FAA operating license by virtue of its recent acquisition of Xtra Airways, an Idaho-based carrier. PeoplExpress President Mike Morisi spoke with Senior Editor Gay Nagle Myers about the tangled web of regulations, requirements, financing and fleets facing the new low-fare carrier.
Q: The original PeoplExpress has quite a colorful history. What's the backstory, and why did you choose the same name?
A: The name may be the same and the fares we'll offer will be low, very low, but similarities end there. I worked at PeoplExpress from 1981 to 1987 as team manager based out of Newark until Continental acquired it and the carrier name was retired.
I remember those days when we flew out of the cramped North Terminal at Newark Airport, offering cheap standby seats and no-frills fares. Passengers paid extra for checked baggage, food and drinks at a time when other airlines were giving away those services for free.
We are able to use the PeoplExpress name now because it had not been in use in the aviation industry for a number of years, and the trademark had not been maintained as an active travel industry mark.
Q: Where is the airline based?
A: We're in Newport News/Williamsburg Airport in southeastern Virginia. PeoplExpress served this airport. We'll use gates vacated by AirTran in March 2012 after it was acquired by Southwest. AirTran represented 43% of the airport's market in 2010.
Q: Why did PeoplExpress recently purchase Xtra Airways?
A: Xtra Airways is certificated by the FAA to conduct flag, domestic and supplemental operations with 737 aircraft. It's been around since 1987, mainly offering charter services, and is authorized to operate in the U.S., Caribbean, Canada, Mexico, Central and South America.
The purchase agreement between PeoplExpress and TEM Enterprises, operator of Xtra Airways, gives us the immediate ability to operate aircraft in the U.S. under the FAA certificate issued to Xtra. Xtra's five 150-passenger 737s, which fly charter routes, were part of the deal.
We now have an FAA certificate and planes to fly. This is a great foundation for what we want to do.
Q: Will Xtra have a role to play in the new PeoplExpress?
A: The purchase of Xtra Airways fits well into our long-term business model. Their team of industry specialists has maintained excellent relationships with the FAA for more than 25 years. We plan to maintain and develop the Xtra brand along with the PeoplExpress brand. At this time it makes perfect sense to continue the Xtra brand for our charter service model.
Q: When will you announce a launch date and route network for PeoplExpress?
A: We will have an announcement this summer regarding start of service and routes to be served. It's a complex process.
There are a lot of logistics, policies and procedures to be finalized, including filing routes and flight schedules, setting fares, hiring staff, training programs, reservations setup and upgrading the website.
Q: What's your goal?
A: To offer very low fares, great service, make flying fun again and to make Newport News/Williamsburg the newest, biggest hub.
Follow Gay Nagle Myers on Twitter @gnmtravelweekly.