People Express Airlines, stylized as PEOPLExpress, was a low-cost airline in the

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

that operated from 1981 until it merged with

Continental Airlines Continental Airlines (simply known as Continental) was a major airline in the United States that operated from 1934 until it merged with United Airlines in 2012. It had ownership interests and brand partnerships with several carriers. Continen ...

in 1987. Its headquarters was in the North Terminal (later Terminal C) of

Newark Liberty International Airport Newark Liberty International Airport is a major international airport serving the New York metropolitan area. The airport straddles the boundary between the cities of Newark, New Jersey, Newark in Essex County, New Jersey, Essex County and E ...

(EWR) in

Newark, New Jersey Newark ( , ) is the List of municipalities in New Jersey, most populous City (New Jersey), city in the U.S. state of New Jersey, the county seat of Essex County, New Jersey, Essex County, and a principal city of the New York metropolitan area. ...

History

Founding and rapid expansion

The company was founded by Don Burr, and several others, who resigned from Frank Lorenzo's Texas International in order to do so. Burr was influenced by British airline entrepreneur Freddie Laker, whose forays into low-cost air travel attracted much press in the 1970s. Terminal space was leased at Newark Airport's North Terminal. People Express Boeing 747 at London Gatwick in June 1983

People Express Boeing 747 at London Gatwick in June 1983

People Express was launched on April 30, 1981, with

Boeing 737 The Boeing 737 is an American narrow-body aircraft, narrow-body aircraft produced by Boeing at its Boeing Renton Factory, Renton factory in Washington (state), Washington. Developed to supplement the Boeing 727 on short and thin routes, the t ...

flights from Newark to Buffalo, Columbus and

Norfolk Norfolk ( ) is a Ceremonial counties of England, ceremonial county in England, located in East Anglia and officially part of the East of England region. It borders Lincolnshire and The Wash to the north-west, the North Sea to the north and eas ...

;

Jacksonville Jacksonville ( ) is the most populous city proper in the U.S. state of Florida, located on the Atlantic coast of North Florida, northeastern Florida. It is the county seat of Duval County, Florida, Duval County, with which the City of Jacksonv ...

and Cleveland Hopkins were added a month later. In December PE had 42 weekday departures from EWR to Baltimore/Washington, Boston Logan, Burlington, Buffalo Niagara, Port Columbus,

, Sarasota-Bradenton, Syracuse Hancock and Palm Beach plus some flights around the periphery of the hub-and-spokes. On May 26, 1983, People Express began non-stop flights from Newark to London's

Gatwick Airport Gatwick Airport , also known as London Gatwick Airport (), is the Airports of London, secondary international airport serving London, West Sussex and Surrey. It is located near Crawley in West Sussex, south of Central London. In 2024, Gatwic ...

with a leased Boeing 747-227B previously operated by Braniff International Airways. Flights started at $149 each way. The route was an instant success with all flights sold out. The airline used a simplified fare structure. All seats on a route were offered at the same price except for slightly lower "off-peak" fares. All seats were in economy class except for "Premium Class" on Boeing 747 flights which featured two class service. Fares were paid in cash aboard the aircraft early in the flight. Passengers were permitted to bring one carry-on bag for free and each checked bag cost $3.00. People Express was the first United States airline to charge a fee for each checked bag. People Express also charged modest amounts for customers wanting food or beverages. Sodas cost 50¢ per can, beer cost $1 per can, honey-roasted peanuts and Rachel's brownies were also 50¢, and the People Express "snak-pak" (an assortment of cheeses, crackers, and salami) cost $2. By 1986, People Express was offering first class in addition to coach seating on all of its Boeing 747 aircraft. A full color print ad at the time stated: "AHHH....THE THINGS SOME PEOPLE HAVE TO DO TO SAVE MONEY. Introducing People Express First Class. Spacious leather seats, two abreast. Service beyond compare. Fine china, crystal and linen. Fresh flowers....A price lower than most standard coach fares on other airlines." This first class service was available on transatlantic flights between Newark and Europe, on transcontinental flights between Newark and California, and on 747 flights between Newark and Denver.

Acquisitions of other airlines

In 1985 People Express bought out

Denver Denver ( ) is a List of municipalities in Colorado#Consolidated city and county, consolidated city and county, the List of capitals in the United States, capital and List of municipalities in Colorado, most populous city of the U.S. state of ...

-based

Frontier Airlines Frontier Airlines, Inc. is a major American ultra low-cost airline headquartered in Denver, Colorado. It operates flights to over 120 destinations in the United States, Caribbean, Mexico and Central America, and employs more than 5,000 staff. ...

. The cover of the May 1, 1986, People Express timetable had the following message: "We're Flying The Widest Plane To The Highest Place: Introducing The 747 Service From New York To Denver. PEOPLExpress & Frontier" This 747 service linked the People Express hub at Newark Airport with the Frontier hub in Denver. The combined company operated flights to most major U.S. cities as well as international service to

Brussels Brussels, officially the Brussels-Capital Region, (All text and all but one graphic show the English name as Brussels-Capital Region.) is a Communities, regions and language areas of Belgium#Regions, region of Belgium comprising #Municipalit ...

and

London London is the Capital city, capital and List of urban areas in the United Kingdom, largest city of both England and the United Kingdom, with a population of in . London metropolitan area, Its wider metropolitan area is the largest in Wester ...

. People Express also bought two commuter air carriers, Britt Airways in the U.S. Midwest and Provincetown-Boston Airlines (PBA) which served New England and Florida. By June 1985, People Express had lost $5.8 million on operating income of $18.7 million. On August 2, 1985, the company announced it was launching daily Boeing 747 service between

and Newark at the prices of $149; to promote the new route, fares were discounted to $99 until September 30. By that time, the airline flew to 41 cities worldwide, with 4,000 employees and a fleet of 72 airplanes. The purchasing spree placed an enormous debt burden on the carrier at the same time that the major legacy carriers' improved their

yield management Yield management (YM) is a variable pricing strategy, based on understanding, anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed, time-limited resource (such as airline seats, hotel room reservat ...

schemes, enabling them to better compete with People Express fares. Integrating Frontier's operations caused labor struggles within the newly absorbed airline, and the change to a low-fare, no-frills mentality alienated Frontier's passengers. Debt pressure on the carrier forced a change in philosophy, as People Express sought to lure business travelers who would pay higher fares. Aircraft cabins were redesigned to include a first-class section, a frequent flyer plan was initiated, and the simplified fare structure was abandoned in favor of the now-usual "

revenue management Revenue management (RM) is a discipline to maximize profit by optimizing rate (ADR) and occupancy (Occ). In its day to day application the maximization of Revenue per Available Room (RevPAR) is paramount. It is seen by some as synonymous with ...

" pricing.

Merger with Continental Airlines

The failed integration and enormous debt stretched People Express too far, and in June 1986, the company announced that it was working with an investment bank to seek buyers for part, or all, of the airline. A deal to sell Frontier off to

United Airlines United Airlines, Inc. is a Major airlines of the United States, major airline in the United States headquartered in Chicago, Chicago, Illinois that operates an extensive domestic and international route network across the United States and six ...

fell through due to the inability of United to agree to terms with their unions on how to incorporate Frontier's staff, leading People Express management to cease Frontier's operations and file for bankruptcy protection for the subsidiary. In the end, People Express was forced to sell entirely to

Texas Air Corporation Texas Air Corporation, also known as Texas Air, was an airline holding company in the United States, incorporated in June 1980 by airline investor Frank Lorenzo to hold and invest in airlines. The company had its headquarters in the America T ...

for roughly $125 million in cash, notes, and assumed debt. Due to concerns about regulatory approval for the purchase, Texas Air first purchased the assets of Frontier from People Express in a separate transaction worth $176 million and then merged Frontier into

, another Texas Air subsidiary. People Express ceased to exist as a carrier on February 1, 1987, when its operations were subsequently merged as well into Continental Airlines via a joint marketing agreement. Continental maintained the Newark hub built by People Express, which passed to

after United and Continental merged in 2010. People Express's spartan, no-frills service earned the carrier several derisive nicknames, including "People Distress" and "Air Bulgaria" (a sarcastic reference to the poor customer service associated with

Eastern Bloc The Eastern Bloc, also known as the Communist Bloc (Combloc), the Socialist Bloc, the Workers Bloc, and the Soviet Bloc, was an unofficial coalition of communist states of Central and Eastern Europe, Asia, Africa, and Latin America that were a ...

countries during the

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Destinations in 1986

According to its September 15, 1986 route map, People Express was serving the following cities. Cities in bold were served with

Boeing 747 The Boeing 747 is a long-range wide-body aircraft, wide-body airliner designed and manufactured by Boeing Commercial Airplanes in the United States between 1968 and 2023. After the introduction of the Boeing 707, 707 in October 1958, Pan Am ...

s. * Albany, NY (ALB) * Allentown, PA (ABE) *

Atlanta, GA Atlanta ( ) is the capital and most populous city in the U.S. state of Georgia. It is the seat of Fulton County and extends into neighboring DeKalb County. With a population of 520,070 (2024 estimate) living within the city limits, At ...

(ATL) *

Baltimore, MD Baltimore is the most populous city in the U.S. state of Maryland. With a population of 585,708 at the 2020 census and estimated at 568,271 in 2024, it is the 30th-most populous U.S. city. The Baltimore metropolitan area is the 20th-larges ...

(BWI) * Birmingham, AL (BHM) *

Boston, MA Boston is the capital and most populous city in the Commonwealth (U.S. state), Commonwealth of Massachusetts in the United States. The city serves as the cultural and Financial centre, financial center of New England, a region of the Northeas ...

(BOS) *

Brussels, Belgium Brussels, officially the Brussels-Capital Region, (All text and all but one graphic show the English name as Brussels-Capital Region.) is a Communities, regions and language areas of Belgium#Regions, region of Belgium comprising #Municipalit ...

(BRU) * Buffalo, NY (BUF) * Burlington, VT (BTV) *

Charlotte, NC Charlotte ( ) is the List of municipalities in North Carolina, most populous city in the U.S. state of North Carolina and the county seat of Mecklenburg County, North Carolina, Mecklenburg County. The population was 874,579 at the 2020 United ...

(CLT) *

Chicago, IL Chicago is the List of municipalities in Illinois, most populous city in the U.S. state of Illinois and in the Midwestern United States. With a population of 2,746,388, as of the 2020 United States census, 2020 census, it is the List of Unite ...

(ORD) *

Cincinnati, OH Cincinnati ( ; colloquially nicknamed Cincy) is a city in Hamilton County, Ohio, United States, and its county seat. Settled in 1788, the city is located on the northern side of the confluence of the Licking and Ohio rivers, the latter of whic ...

(CVG) * Cleveland, OH (CLE) *

Columbus, OH Columbus (, ) is the List of capitals in the United States, capital and List of cities in Ohio, most populous city of the U.S. state of Ohio. With a 2020 United States census, 2020 census population of 905,748, it is the List of United States ...

(CMH) *

Dallas Dallas () is a city in the U.S. state of Texas and the most populous city in the Dallas–Fort Worth metroplex, the List of Texas metropolitan areas, most populous metropolitan area in Texas and the Metropolitan statistical area, fourth-most ...

/ Fort Worth, TX (DFW) *

Dayton, OH Dayton () is a city in Montgomery County, Ohio, United States, and its county seat. It is the List of cities in Ohio, sixth-most populous city in Ohio, with a population of 137,644 at the 2020 United States census, 2020 census. The Dayton metro ...

(DAY) *

Denver, CO Denver ( ) is a consolidated city and county, the capital and most populous city of the U.S. state of Colorado. It is located in the Western United States, in the South Platte River Valley on the western edge of the High Plains east of ...

(DEN) * Detroit, MI (DTW) * Fort Lauderdale, FL (FLL) * Fort Myers, FL (RSW) * Hartford, CT/ Springfield, MA (BDL) * Houston, TX – Hobby Airport (HOU) *

Jacksonville, FL Jacksonville ( ) is the most populous city proper in the U.S. state of Florida, located on the Atlantic coast of North Florida, northeastern Florida. It is the county seat of Duval County, Florida, Duval County, with which the City of Jacksonv ...

(JAX) *

London, UK London is the capital and largest city of both England and the United Kingdom, with a population of in . Its wider metropolitan area is the largest in Western Europe, with a population of 14.9 million. London stands on the River Tha ...

–

(LGW) * Los Angeles, CA (LAX) * Montreal, QC (YMX) * Miami, FL (MIA) *

Nashville, TN Nashville, often known as Music City, is the capital and List of municipalities in Tennessee, most populous city in the U.S. state of Tennessee. It is the county seat, seat of Davidson County, Tennessee, Davidson County in Middle Tennessee, locat ...

(BNA) * Newark, NJ – Newark Airport (EWR) – ''Hub and airline headquarters'' *

New Orleans, LA New Orleans (commonly known as NOLA or The Big Easy among other nicknames) is a Consolidated city-county, consolidated city-parish located along the Mississippi River in the U.S. state of Louisiana. With a population of 383,997 at the 2020 ...

(MSY) *

Norfolk, VA Norfolk ( ) is an independent city (United States), independent city in the U.S. state of Virginia. It had a population of 238,005 at the 2020 United States census, 2020 census, making it the List of cities in Virginia, third-most populous city ...

(ORF) *

Oakland, CA Oakland is a city in the East Bay region of the San Francisco Bay Area in the U.S. state of California. It is the county seat and most populous city in Alameda County, California, Alameda County, with a population of 440,646 in 2020. A major We ...

–

Oakland International Airport Oakland International Airport is an international airport in Oakland, California, United States. The airport is located south of downtown Oakland and east of San Francisco, serving the East Bay of the San Francisco Bay Area. The airport is ...

(OAK) – '' San Francisco, CA was initially served via Oakland with the airline subsequently moving its 747 service from Oakland to

San Francisco International Airport San Francisco International Airport is the primary international airport for the San Francisco Bay Area in the U.S. state of California. Owned and operated by the City and County of San Francisco, the airport has a San Francisco mailing ...

( SFO)'' *

Orlando, FL Orlando ( ) is a city in and the county seat of Orange County, Florida, United States. The city proper had a population of 307,573 at the 2020 census, making it the fourth-most populous city in Florida behind Jacksonville, Florida, Jacksonville ...

(MCO) *

Philadelphia, PA Philadelphia ( ), colloquially referred to as Philly, is the List of municipalities in Pennsylvania, most populous city in the U.S. state of Pennsylvania and the List of United States cities by population, sixth-most populous city in the Unit ...

(PHL) *

Pittsburgh, PA Pittsburgh ( ) is a city in Allegheny County, Pennsylvania, United States, and its county seat. It is the List of municipalities in Pennsylvania#Municipalities, second-most populous city in Pennsylvania (after Philadelphia) and the List of Un ...

(PIT) * Portland, ME (PWM) * Providence, RI (PVD) *

Raleigh Raleigh ( ) is the List of capitals in the United States, capital city of the U.S. state of North Carolina. It is the List of municipalities in North Carolina, second-most populous city in the state (after Charlotte, North Carolina, Charlotte) ...

/ Durham, NC (RDU) *

Rochester, NY Rochester is a city in and the county seat, seat of government of Monroe County, New York, United States. It is the List of municipalities in New York, fourth-most populous city and 10th most-populated municipality in New York, with a populati ...

(ROC) * St. Louis, MO (STL) * St. Petersburg, FL – St. Petersburg/Clearwater International Airport (PIE) – ''

Tampa, FL Tampa ( ) is a city on the Gulf Coast of the U.S. state of Florida. Tampa's borders include the north shore of Tampa Bay and the east shore of Old Tampa Bay. Tampa is the largest city in the Tampa Bay area and the county seat of Hillsboroug ...

was served via St. Petersburg'' * Sarasota, FL (SRQ) * Syracuse, NY (SYR) *

Washington, DC Washington, D.C., formally the District of Columbia and commonly known as Washington or D.C., is the capital city and Federal district of the United States, federal district of the United States. The city is on the Potomac River, across from ...

–

Dulles International Airport Washington Dulles International Airport ( ) – commonly known by its former name of Dulles International Airport, by its airport code of IAD, or simply as Dulles Airport – is an international airport in the Eastern United States, located w ...

(IAD) *

– National Airport (DCA, now Reagan Airport) * West Palm Beach, FL (PBI) The route map includes service operated by commuter air carriers Provincetown-Boston Airlines (PBA) in Florida and the U.S. northeast, and Britt Airways in the U.S. midwest. PBA had a hub at St. Petersburg (PIE) in Florida and also served Hyannis, Martha's Vineyard, Nantucket and New Bedford in the U.S. northeast. Britt had hubs at Chicago (ORD) and St. Louis.

Fleet

People Express operated the following jet aircraft types at the time of its merger with

In popular culture

On the episode of animated sitcom ''

The Simpsons ''The Simpsons'' is an American animated sitcom created by Matt Groening and developed by Groening, James L. Brooks and Sam Simon for the Fox Broadcasting Company. It is a Satire (film and television), satirical depiction of American life ...

'', Homer Simpson describes 1985 as the year "People Express introduced a generation of hicks to air travel" in the 1985-set flashback episode " Homer's Barbershop Quartet"

Headquarters

The PeopleExpress headquarters were on the grounds of

Newark International Airport Newark Liberty International Airport is a major international airport serving the New York metropolitan area. The airport straddles the boundary between the cities of Newark in Essex County and Elizabeth in Union County, in the U.S. sta ...

. The headquarters offices, described by the ''

Miami Herald The ''Miami Herald'' is an American daily newspaper owned by McClatchy, The McClatchy Company and headquartered in Miami-Dade County, Florida. Founded in 1903, it is the fifth-largest newspaper in Florida, serving Miami-Dade, Broward County, Fl ...

'' as "a maze-like bevy of small offices," were in an attic, located on the second floor of the North Terminal. The North Terminal first opened in 1953. Before the arrival of PeopleExpress, the terminal was largely unused, although it had some charter flights departing and arriving there. After the end of PeopleExpress, the Department of Veterans Affairs used the former terminal as a transfer point for casualties in the

Gulf War , combatant2 = , commander1 = , commander2 = , strength1 = Over 950,000 soldiers3,113 tanks1,800 aircraft2,200 artillery systems , page = https://www.govinfo.gov/content/pkg/GAOREPORTS-PEMD-96- ...

. In 1997, a project to demolish the North Terminal and redevelop the land was launched at a cost of $50.1 million.

Reuse of name

On February 13, 2012, Newport News/Williamsburg International Airport announced the resurrection of the People Express brand for a start-up airline. Corporate headquarters for the airline were located in Newport News. Service was initially anticipated to begin from Pittsburgh in late 2013. However this was delayed until 2014 due to the lengthy certification process. On October 5, Jeffrey Erickson, former

Atlas Air Atlas Air, Inc. is a major American cargo airline, charter airline, passenger charter airline, and Aircraft lease, aircraft lessor based in White Plains, New York. It is a wholly owned subsidiary of Atlas Air Worldwide Holdings. Atlas Air is t ...

President and CEO was announced as People Express CEO. Having eventually started service on June 30, 2014, People Express abruptly suspended service on September 26, 2014, due to its two planes being grounded for maintenance and repairs. Service never resumed. On November 12, 2014, this new version of People Express was evicted from the Newport News/Williamsburg International Airport due to non-payment of Passenger Facilities Charges of US$100,000.

References

External links

The Rise and Fall of PEOPLExpress
Eric Kochneff, August 2004
People Express Management Flight Simulator by Prof. John Sterman, MIT
{{DEFAULTSORT:People Express Airlines (1981-1987) Airlines established in 1981 Airlines disestablished in 1987 Companies based in Newark, New Jersey Defunct companies based in New Jersey Defunct low-cost airlines of the United States 1981 establishments in New Jersey 1987 disestablishments in New Jersey