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Window for targeted launch continues to shrink for latest iteration of People Express

Analysis

Ambitious plans by upstart People Express for a late summer launch appear to be fading as the airline is still awaiting requisite US government approvals to inaugurate flights from Newport News-Williamsburg International Airport. The delay comes despite the carrier's management having extensive airline experience, which should lead to understanding the intricacies and complexities of gaining certification in order to start business. People Express's vice-chairman William Stockbridge was involved in the launch of the original carrier and served as CEO of defunct trans-Atlantic business carrier Maxjet. The missed launch date means People Express will likely debut after the high season for travel in the US, creating an immediate challenge as its operations get underway during a period of weaker demand with a business model that has a long path to tread in order to gain credibility and achieve profitability.

The latest version of People Express made its official marketing splash in Feb-2012 after starting its pre-launch business period with USD5 million in capital, which the airline felt was adequate to cover expenses associated with that phase of its business. At the time it unveiled its plans, the carrier stated its goal was to inaugurate flights during the late summer of 2012.

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