Newport News-based People Express acquires XTRA Airways

June 6, 2013

June 06--NEWPORT NEWS -- People Express has acquired Idaho-based XTRA Airways, paving the way for the Newport News startup to begin flights out of Newport News-Williamsburg International Airport, according an announcement Wednesday.

"This is a huge step," said Michael Morisi, president of People Express.

Based in Boise, XTRA Airways is certified by the Federal Aviation Administration to conduct operations with Boeing 737 passenger jets. The airline was founded in 1987 and is authorized to operate in the U.S., Canada, South America, Central America and elsewhere.

Wednesday's agreement "gives People Express the immediate ability to operate aircraft under the FAA certificate issued to XTRA," a press release states. The announcement was made jointly by People Express and TEM Enterprises, operator of XTRA Airways.

"The purchase of XTRA Airways fits well into the People Express long-term business model," Morisi added. He said to expect more announcements in the coming weeks as to when 737s under the People Express banner will begin taking to the skies.

The Newport News airline plans to maintain and develop the XTRA Airways brand along with its own.

"At this time, it makes perfect sense to continue the XTRA brand for our charter service model," Morisi said.

Lisa Dunn, president of XTRA Airways, said the deal will help the Idaho airline "expand our charter business model and will benefit our staff in numerous ways."

Its charter customers include sports teams, government agencies, foreign dignitaries, press corps and casinos.

In March, People Express signed an agreement to purchase XTRA Airways, although the airline was not named at the time. The Regional Air Service Enhancement Committee granted a $500,000 short-term loan to help finance the purchase. The committee collects funds from a number of localities on the Peninsula. The money was returned to taxpayers once the purchase agreement was signed.

"This is the first step in what will be a lot of work," Morisi said. "Because XTRA Airways has scheduled operating authority, it certainly does speed things up for us. The beauty of this, we know that have an established charter operation that is generating significant revenues and doing very well. We think it's a great step for us."

People Express first announced plans to relaunch in February 2012, but snags in financing delayed the start of operations. Newport News officials credited People Express for its persistence, noting the difficulty of starting an airline from the ground up.

Copyright 2013 - Daily Press (Newport News, Va.)