As expected, PeoplExpress filed an application with the Transportation Department (DOT) to offer low-fare air service in secondary markets currently underserved or abandoned by major carriers.
Anticipating quick approval by the DOT, the low-cost carrier initially plans to launch all-coach service in late summer from its Newport News, Va., headquarters to Pittsburgh; Orlando; Providence, R.I.; and West Palm Beach.
The schedule calls for eight daily departures, with increases every other month, using gates at Newport News/Williamsburg Airport in southeastern Virginia that were vacated by AirTran following its acquisition by Southwest.
The fleet will consist of eight 150-seat 737s in its first year of operation, which will gradually ramp up to 16 aircraft.
"PeoplExpress intends to liberate consumers from poor service, high fares, hidden fees and terminal congestion connecting through busy mega-hubs throughout the U.S.," said Mike Morisi, president and COO.
"We're optimistic that DOT will recognize the value of our new service and expeditiously approve our application," he said.
The carrier has filed its initial certification paperwork with the FAA, and capitalization is under way and on track, according to Morisi.
Meetings with supplier partners, including hotels and car rental companies, currently are taking place, "and we will have partnerships in place when we launch," Morisi said.
Although the company is using the name of the quirky, no-frills airline that operated at Newark Airport in the 1980s, the new startup carrier said there will be no charge for the first two checked bags or seat assignments, no change fees and no charge for regional snacks and soft drinks.
Morisi, who was a team manager with the original carrier, emphasized that "the new PeoplExpress is not stepping back in time but is stepping up in service and applying an innovative spirit to today's air travel market needs."
The carrier's business model is based on low ticket prices, integrity of service and unsurpassed customer experience, according to Morisi's recent blog on the www.flypex.com site.
The carrier plans to adopt a three-tier pricing structure with capacity-controlled discount fares 60% to 70% below current fare levels in each market, everyday fares representing a 40% to 50% discount and a business fare up to 40% below current prices.
"Although there are critics who believe we are just a nostalgic bunch of ex-original-PeoplExpress employees (we are, by the way), we are a bunch of People who enjoy travel -- or used to," he blogged.
According to the DOT application, the new carrier will also practice a form of cross-training for personnel that was pioneered at the original PeoplExpress, where pilots and office workers often took a turn loading baggage and performing other duties.
The new carrier told the DOT, "To enhance customer service and cost efficiency, all of PeoplExpress' line employees will be cross-utilized into staff functions. Thus, all of PeoplExpress' employees will appreciate and understand the company's business model and participate directly in the decisions that affect the company's operations."
The management roster provided to the DOT includes several airline industry veterans, some of whom cut their teeth at the original PeoplExpress, such as Morisi; William Stockbridge, vice chairman; and Christine DeZarn, vice president and chief marketing officer, who also was a travel agent.
The chairman is William Mayer, co-founder and senior partner of Park Avenue Equity.
Follow Gay Nagle Myers on Twitter @gnmtravelweekly.