The long-awaited return of the famous PEOPLExpress brand to the US domestic market has taken another big step closer to becoming a reality after it was confirmed by the start-up’s management that it has now formalised an agreement with TEM Enterprises, parent company of US carrier XTRA Airways, to acquire full control of the carrier, providing the operating permits it required for its scheduled launch.

The company plans to launch operations from Newport News / Williamsburg International Airport serving many of the markets previously flown by the carrier of the same name back in the 1980s prior to it becoming absorbed into Continental Airlines. With a mission to serve markets currently underserved by major carriers, PEOPLExpress said last year during its public unveiling that it would offer deeply discounted fares to select cities in the eastern US initially from Newport News / Williamsburg International Airport, but potentially from other locations across the US.

“The purchase of XTRA Airways fits well into the PEOPLExpress long term business model.  Their talented team of airline industry specialists has maintained excellent relationships with the FAA, its customers and industry leaders for more than 25 years.”

Mike Morisi
President, PEOPLExpress

The original plan was to operate as a virtual airline on the Air Operators Certificate (AOC) of an established venture with a goal to “make flying fun again,” but due to unknown circumstances it was forced to defer the launch of the business by almost a year as business targets changed. However, the deal to take control of XTRA Airways now gives it the immediate ability to operate aircraft under the AOC of Boise, Idaho-based carrier.

XTRA Airways was established in 1987 and is authorized to operate in the United States, Caribbean, Canada, Mexico, Central and South America, and other areas. Its charter customers currently include sports teams, government agencies, foreign dignitaries, press groups, casinos and other organisations. At the current time PEOPLExpress plans to maintain the XTRA Airways brand alongside its own proposed operations. “At this time it makes perfect sense to continue the XTRA brand four our charter service model, said Mike Morisi, President, PEOPLExpress.

“The purchase of XTRA Airways fits well into the PEOPLExpress long term business model. Their talented team of airline industry specialists has maintained excellent relationships with the FAA, its customers and industry leaders for more than 25 years,” he added.

Based on this latest announcement PEOPLExpress could launch operations later this summer and is expected to initially start with up to four aircraft but has a business plan to expand to around ten units in the short-term. Although its network has not been officially announced, the carrier’s management has highlighted Pittsburgh, PA, Providence, RI, West Palm Beach, FL and Newark, NJ, as potential markets. It says opportunities exist in these locations as airline consolidation over the past few years has led to a reduction of non-stop air service.

The legacy namesake of the new PEOPLExpress operated in the United States from 1981 to 1987, and was at one time the fifth largest domestic airline with flights to most major US cities, as well as select European destinations. The original PEOPLExpress changed the face of the airline industry in the 1980s, and the revived brand vows to re-ignite the brand’s unique spirit of innovation to address today’s market needs.

Newport News / Williamsburg International Airport is currently served by Allegiant Air, Delta Air Lines, Frontier Airlines and US Airways. AirTran Airways also previously served the airport up until last year but the closure of its routes in spring 2012 has resulted in a significant decline in passenger numbers at the facility with traffic down over a third on the previous year.