PeoplExpress signs deal to get off the ground [View all]

[brooklynite]

Source: The Virginian-Pilot

PeoplExpress Airlines Inc. on Wednesday announced a deal to pave the way for it to launch discount air service from Newport News.

PeoplExpress, a reincarnation of the cut-rate air carrier from the 1980s, said it bought Boise, Idaho-based XTRA Airways from TEM Enterprises. Terms weren't disclosed.

XTRA Airways' five Boeing 737's, which fly charter routes, were part of the deal, said Mike Morisi, president of Newport News-based PeoplExpress. He said though XTRA doesn't fly scheduled routes, it is FAA-certified to do so and that certification transferred to PeoplExpress. He said he hopes to announce a flight schedule and destinations soon.

"This is a great foundation for what we want to do," Morisi said.

Read more: http://hamptonroads.com/2013/06/peoplexpress-signs-deal-get-ground

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Will be interesting to see if the PE low-cost model will still work in today's airline market.