PEOPLExpress rides again

[Traderd]

http://www.nbcnews.com/business/travel/low-cost-airline-peoplexpress-takes-skies-june-n118611

"Starting June 30, PEOPLExpress will begin service from its Newport News/Williamsburg, Virginia, hub with one round-trip flight daily to Pittsburgh and one to Boston, and two daily to Newark, New Jersey."

"Better customer service will separate PEOPLExpress from the other low-cost carriers, Erickson said. "You do it by caring, by listening," he said. " If you go back and read the history of the first PEOPLExpress, they really created a good feeling among their passengers. You do it by solving their problems."

"I think there is a real opportunity as some of the other airlines are distracted by completing their merger or focusing on slots that came available," Erickson said in an interview. "Our entire focus has been to recreate the PEOPLExpress brand at airports that have a demonstrated a history of traffic but no longer have the service."

Intro rates of $76 plus baggage and other fees. 37 400's are the airframes. Looks like a Spirit model perhaps.

 

[flyboyike]

37 400's are the airframes. Looks like a Spirit model perhaps.

Spirit has old, decrepit 734s?

 

[Traderd]

Spirit has old, decrepit 734s?

Not to my knowledge, so you have a good point about that particular business model differential.

I'm guessing they can wax them up (won't need new paint) and their customer base won't notice or care. I know a couple that fly Spirit frequently and they've never mentioned those new, non-decrepit AirBi. What they do mention is how inexpensive they can fly on the airline.

To paraphrase a line from Seinfeld; "Cheap tickets and poor lighting. That's how you sell airline tickets!"

Well, to a certain market anyway.

 

[hyflyin]

Not to my knowledge, so you have a good point about that particular business model differential.

I'm guessing they can wax them up (won't need new paint) and their customer base won't notice or care. I know a couple that fly Spirit frequently and they've never mentioned those new, non-decrepit AirBi. What they do mention is how inexpensive they can fly on the airline.

To paraphrase a line from Seinfeld; "Cheap tickets and poor lighting. That's how you sell airline tickets!"

Well, to a certain market anyway.

That "certain market" produced more in net profits at an airline 1/3 of the size of jetblue and just over 17 times more in profits than virgin. That makes it a pretty sizable "certain market" don't ya think?

Prize matters to many and the profits prove it. Even those who claim they are "all that" and deserve better.

By the way the current spirit model is just over 6 years old, virgin is 8. Prior to that spirit was almost bankrupt. It's interesting to see that the "popular" one is struggling to eek out a decent profit, while the "crap" is struggling to decide what to do with all their cheddar.

 

[Flyby1206]

Flights operated by Vision Airlines

 

[Traderd]

That "certain market" produced more in net profits at an airline 1/3 of the size of jetblue and just over 17 times more in profits than virgin. That makes it a pretty sizable "certain market" don't ya think?

Prize matters to many and the profits prove it. Even those who claim they are "all that" and deserve better.

By the way the current spirit model is just over 6 years old, virgin is 8. Prior to that spirit was almost bankrupt. It's interesting to see that the "popular" one is struggling to eek out a decent profit, while the "crap" is struggling to decide what to do with all their cheddar.

I certainly "do think." I'm not attempting to denigrate the model; it makes money so do it. The more who can pull it off, the merrier. I'd like to see the country flooded with cheap seats and capacity to match. Especially if they'd all IPO and I could get the early shares.

I was just observing that cheap tickets do not sell to every demographic.

 

[hyflyin]

I certainly "do think." I'm not attempting to denigrate the model; it makes money so do it. The more who can pull it off, the merrier. I'd like to see the country flooded with cheap seats and capacity to match. Especially if they'd all IPO and I could get the early shares.

I was just observing that cheap tickets do not sell to every demographic.

I didn't think you were denigrating the model at all, just thinking out loud.

True statement, however the demographic looking for cheap seats is getting bigger. I also think there are some that are coming to the realization that when you can save hundreds for a few hour ride, that really isn't that special to begin with, it's worth saving the money for the destination. Of course there will always be those that won't "stoop" to the spirit level and the business traveler generally has no interest in saving the boss some money when he won't see any of it in his pocket anyways. I wouldn't either.