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PEOPLExpress Airlines nears completion of initial route line up. Success remains far from certain

Analysis

US proposed startup PEOPLExpress Airlines is close to completing its initial route roll-out with a first point to point market outside its base at Newport News Williamsburg International Airport. The debut of service would be from Orlando International to Charleston, West Virginia in Oct-2014.

Even as the airline is close to reaching a full two months in operation, the same questions over PEOPLExpress' long term viability loom large - sustaining enough demand on thin O&D markets from Newport News to create a sustainable business.

Like other low-cost airlines, PEOPLExpress believes US consolidation has created a particular window of opportunity for airlines looking to target cost conscious travellers. But there is a huge gap between recognising an opportunity and successfully capitalising on favourable circumstances. PEOPLExpress has some ground still to cover before success can be guaranteed.

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