Feb. 14--NEWPORT NEWS -- PEOPLExpress discount airlines is being reborn in Newport News.
But will it stay alive?
Mike Boyd, a Colorado-based airline consultant, said one could fill a graveyard with failed airline startups.
"There just isn't a need for another airline that goes up and down the East Coast," Boyd said. "I'm all for people trying something, but naming it after a failed airline just doesn't make a whole lot of sense."
Joseph Schwieterman, a transportation professor at DePaul University in Chicago, said the rebirth of 1980s-era People Express is fascinating.
"People Express left a tremendous if erratic legacy," Schwieterman said.
He said starting an airline in today's market is precarious business, due to the high cost of jet fuel and intense competition.
"Airline startups have fallen to a trickle in the last few years," Schwieterman said.
PEOPLExpress, which will be headquartered in Newport News, is expected to hire about 1,000 employees over the next three years. Starting this summer, the airline will fly to Pittsburgh, Newark, Providence R.I., and West Palm Beach, Fla. Airport officials said they're confident more routes will be added later.
Schwieterman said in the 1980s People Express had time to establish itself because its fares were significantly less expensive than the major carriers.
"Now, the major airlines are going to quickly match prices dollar for dollar," Schwieterman said. "It's going to make it tough." He said it's also going to be a challenge to make money on less profitable "short-haul" flights.
Schwieterman said People Express failed in the late 1980s because it "over-expanded" and was not able to sustain its own growth.
He said it's unusual to see a new, low-cost airline use a smaller airport like Newport News to base its operations. And while using the People Express brand name is risky, Schwieterman said the name also has positive connotations.
"The name also evokes excitement," he said. "People Express was a breakthrough product."
Valerie Weaver, a vice president at Hampton-based Lawton's Travel Service, said the airline, especially if it does well, will help keep ticket prices low. She said starting an airline at a small- to medium-sized airport is probably a wise choice, especially since it's still close to major population centers.
"The Newport News airport is a great place to start up an airline," Weaver said. "It's very convenient to get into and out of."
Copyright 2012 - Daily Press, Newport News, Va.
