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Low-cost airline PEOPLExpress finally readies for launch; but will its "Vision" take hold?

Analysis

More than two years after declaring plans to resurrect the PEOPLExpress name, executives are now planning a Jun-2014 launch from Newport News Williamsburg International Airport.

After the airline's self-styled seasoned executives underestimated the effort and complexity of obtaining certification from the US Department of Transportation (DoT), PEOPLExpress is working with Las Vegas-based Vision Airlines to introduce service after flirting with the purchase of charter carrier XTRA Airways during 2013.

Without explicitly declaring itself an ultra low-cost carrier (ULCC), it seems PEOPLExpress is taking pages from Spirit's playbook in offering cheap base fares and charging for other aspects of travel. It will be largely shielded from large network airlines on its initial crop of routes; but limiting its exposure to larger carriers does not alone guarantee the airline's chances of success.

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