PeoplExpress Coming Back?

PITOCC71

Member
Nov 17, 2008
80
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Will it succeed this time or just become "People's Distress" again?

http://travel.usatoday.com/flights/post/2012/02/peoplexpress--to-be-revived/627058/1
 
There are three templates for start-ups that have been successful so far.

First is FL which almost disappeared after the Vanguard Everglades crash but got it's act together. Since buying and adopting the Airtran name, they've managed to do relatively well with new planes and a hybrid hub-spoke/point to point model.

Second is B6, starting with new airplanes and a largely hub-spoke model using some frills (like IFE) and the largest O&D home market to be successful.

Third is Allegient, using older airplanes and a point to point model. They've been very successful so far, ofter generating profit margins that exceed about anyone else.

All have been in operation longer than the original PE, which seemed to both grow too fast and try to break out of their niche. Time will tell but it seems that the new PE is going to be closer to the Allegient model than either of the other two. That could be a recipe for success if they stick to that model and don't become too big for their britches.

Jim
 
You forgot Spirit, who I'd say has also managed to be quite successful.

Reading thru the new PE's marketing fluff, they plan to offer reserved seats and a bundled product. Right there, they have nothing in common with the original PE's business model. Now, if they have a totally cross-utilized workforce, maybe they'll be a little closer.... ;)

I started my long road in this industry at PEX -- is anyone else willing to admit that?...
 
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