Startup airline PeoplExpress suspends flights

[Grandpa +65]

Startup airline PeoplExpress suspends flights
PeoplExpress suspends flights; Virginia-based startup had launched with a familiar name

Associated Press By The Associated Press
2 hours ago....Fri, Sep 26, 2014, 7:29pm EDT - US Markets are closed

Start-up airline PeoplExpress says it is suspending flights because of problems including a shortage of crews and only one plane, but it hopes to resume flying next month.

The airline based in Newport News, Virginia, said Friday that it was processing refunds for passengers holding tickets through Oct. 15. The company said travelers booked on later flights will get an email once plans for resuming service on or about Oct. 16 are complete.

PeoplExpress, which took its name from another airline that operated in the 1980s, started flying on June 30 and offered flights to seven destinations from Newport News on Boeing 737 jets operated by Vision Airlines.

PeoplExpress said that it struggled to operate a full schedule due to aircraft, crew-availability and maintenance issues. One plane was damaged by a vendor's truck on Sept. 19, leaving just one aircraft because the airline lacked a planned spare.

Last month, the airline's founder, Mike Morisi, apologized to passengers after delays that he blamed on a "perfect storm" of setbacks, including an eye injury to the plane's captain and an accident that left the co-pilot's wife hospitalized. He also scolded passengers who "believe that screaming and cursing a 25 year-old customer service representative" is acceptable behavior.

PeoplExpress sought to capitalize on consolidation in the airline industry, which has reduced service for travelers in smaller cities such as Newport News. The airline charged low base fares but added fees for items that are free on many airlines, such as non-alcoholic beverages and putting a carry-on bag in the overhead bin.

The original PeoplExpress operated from 1981 to 1987 and grew rapidly by offering rock-bottom fares. It was briefly the nation's fifth largest airline before falling victim to costly overexpansion. It was bought by Continental Airlines, which dropped the name




http://finance.yahoo.com/news/startup-airline-peoplexpress-suspends-flights-193520573.html

 

[tired_pilot]

What are the effects on this on Vision?

 

[Pattern-Master]

Did we really expect anything other than this outcome, really.

 

[Flyer1015]

737-400s flying out of Newport News is a business model that isn't working? Shocker.

 

[SpauldingSmails]

It imploded even faster than I dreamt possible.

 

[PsubS]

Vision. Did they ever deliver the number of aircraft in PE livery and layout?

That's the question that should be asked.

 

[jynxyjericho]

Vision. Did they ever deliver the number of aircraft in PE livery and layout?

That's the question that should be asked.

Can you expand?

 

[CaptSeth]

They probably had a contractual obligation to provide a certain amount of aircraft, crews, and lift.

 

[jynxyjericho]

They probably had a contractual obligation to provide a certain amount of aircraft, crews, and lift.

I don't doubt vision was to provide crew and lift, but it seems like they did. Lav truck took out one plane and the other one kept flying.

Psubs made it sound like they were suppose to paint another plane, but that's PEX not the ACMI unless their contract said otherwise. PEX can't pay their bills I doubt they had the money to paint a 737.

 

[dollacrackho]

Any idea what they're paying people to fly a 747? Let me guess starting captains at around 60 grand a year. Any person that leaves a decent job to go here or eastern deserves their trip to the unemployment line in a couple months.