There was once a low fares airline in the United States called People Express Airlines, which was branded as PEOPLExpress. The airline started services on 30 April 1981 with Boeing 737-100s sourced from Lufthansa, for flights from New York Newark to Buffalo, Columbus and Norfolk.
With fast expansion – including using leased Boeing 747s for flights from Newark to London Gatwick – the airline looked to be on course for success. So what happened to them?
People Express Video
Following on from the last video about California’s Pacific Southwest Airlines, this time we have a look at the story of People Express. The video below runs for a little under 12 minutes and covers the salient points.
It’s fascinating to see some of the methods they used to keep costs down, such as cross utilisation of employees. Also, I never knew all staff were required to hold stock in the company. Not sure how I’d go if someone asked me to do that where I work!
Once again, it seems the airline began to unravel once they started to go off their business plan. They originally flew routes that did not compete with major airlines, but once they did, those airlines matched People Express from a pricing perspective.
Acquisitions such as that of Frontier also contributed to the end. Eventually the airline was purchased by Texas Air Corporation and merged into Continental Airlines.
Overall Thoughts
People Express certainly allowed many people to start flying for the first time. Their low fares increased the amount of people flying between cities and the business model, at least in the beginning, worked very well.
Over expansion and trying to change their core model to compete with other carriers led to their eventual downfall. How many times have we seen that play out in the aviation industry?
Did you ever fly with People Express? If so, what were they like? Thank you for reading and if you have any comments or questions, please leave them below.
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Featured image by Aero Icarus on Flickr via Wikimedia Commons.
Would I complain about delays when I flew from Newark to Florida for $25? Hell no! Best experience ever. Flight attendants treated us with dignity not like today! And I have plenty of leg room, usually had the whole row to myself. Paid onboard in cash! And I seem to remember they sold a nifty little snack pack on board. People Express was the best!!
Excellent that you got to fly with them and that you had such good experiences. That sounds really great. Thanks for sharing that! Good memories there, I see.
Oh, yes I fondly remember PE! Flew them quite a few times from EWR to Chicago (not sure if ORD or MDW) mid 80s. I recall making a plane reservation by phone. Showing up at EWR North Terminal (prev abandoned prob due to newer A, B, C terminals). I also recall cheap fares (maybe $50 one way?) Flight Attendants going down aisle with one of those credit card machines that made an imprint of card and gave you the carbon copy receipt. Pretty sure it was in flight and always wondered what if you refused to pay? Another mentioned rear… Read more »
Thanks for sharing all of that! Just like being there reading this! A different time, but certainly a memorable one, it seems. Appreciate it!
When their airfares were matched by the big boys and the flying public said “Thanks Peoples” while boarding their United, American, Delta etc. etc. discounted flights, Peoples Express was doomed.
I hear you on that!
I flew on People’s Express return from Mirabel, Quebec (Montreal) to Newark (New York) a few times in the 1980s.. it was an inexpensive way to show off the Big Apple to my girlfriends of that time.. I think the fare in the mid 1980s was around $75 Cdn.. I seem to remember that the aircraft used had a rear staircase entry.. probably a Boeing 727.
Haha! Your… girlfriends… plural! I like it 🙂 With fares like that it definitely allowed for travel at more of a whim than it would have been beforehand. It would absolutely have been Boeing 727s with the rear stair entry, as they had no other aircraft with that. Good times, it seems! Thanks for sharing that, I enjoyed hearing it.
I never flew them, but I know that the flight attendants would go down the aisle with a cash register selling the tickets. Also, you could fly from anywhere to anywhere via Newark. E.g. you could fly from MCO-TPA, a distance of about 90 miles by flying MCO-EWR and then EWR-TPA.
People keep mentioning they sold tickets on board, which is certainly something nobody does today. That’s some diversion via EWE for a MCO-TPA! Something some frequent flyers would happily do (me included, I imagine!). Thanks for that!
We did sell tickets on board. On those short legs, like Newark to Boston, that was quite a challenge to finish! On a 737 seating 118 or 130(depending on configuration) it was amazing that we could. We were also selling snack packs, Rachel’s brownies(had too many of those, so good) and drinks.
Oh, thanks for the first hand info there, Sheri! I really appreciate it. Sounds like it was a lot of fun – and hard work!!
I was a travel agent at the time people express operated. They were a nightmare to work with and I think, the beginning of the end of the old school air travel where everyone was treated to fine service in all classes. They definitely cheapened the experience. But they were good in that they allowed the average person to travel much more due to their low fares.
I can imagine they wouldn’t have been easy to work with, what with their model and everything. It looks like they were genuinely one of the first if not the first to absolutely bring about lasting change over in the US. I agree, it definitely seems like they allowed the average person to travel around the States. Thanks for the comment!
I worked for PeopleExpress from 1983 thru the end of 1985. My job title was Customer Service Manager and we did everything but fly the planes and fix them! It was a great experience
Sounds like a really fantastic varied job! Glad to hear it was a great experience!
I flew People Express from Rochester, NY to Newark, NJ back in the day. Customer service agent was awesome — upgraded me to Row 1 or 2 (or the People version of ‘First’). That was a first for me. Felt pretty cool. Was hooked from that moment on.
It’s amazing how something like that can really give a hugely positive impression of a brand. Great to hear, thanks for that!
The North terminal at Newark was always a mess with masses of people waiting for flights on People Express. Took them EWR/BTV/EWR many times and also Newark/London Gatwick on 747 for $99.00 one way in maybe 1984. Plane was full. Reservations only be phone and always “busy”.
Sounds like they were doing a great job there for a while at least. $99 to London is a steal, even in 1984! Thanks for sharing that.
I flew Peoples Express in the mid 80’s from Syracuse to Newark, it was very cost effective compared to the bus and about the same time because flight was always delayed. It also was difficult when delayed because there was no way to let people know you were delayed back then, no cell phones. They also used to give you a cookie when you were boarding, and I think that was it, when other airlines like continental were feeding you meals on even short flights. It was worth what it was at the time.
Yes, delays were much more difficult back in the day before mobile phones. Thanks for sharing that, I didn’t know about the cookie, Appreciate it!
People’s “Depress” is what we called it. On one occasion I
Spent a full 24 hours at LAX waiting for take off. Every 3 hours they would provide another excuse.
Yikes, that must have been awful, not to mention frustrating!
Another of Frank Lorenzo’s endeavors to enrich himself by destroying people’s lives. He now uses what he stole for his personal use.
Yes, a lot of carnage in the airline industry due to that man from what I hear!
In those days, anyone, not just ticketed passengers could enter the gate area. PeoplExpress allowed you to board then buy a ticket after takeoff. Later, they sold tickets at the ticket counter before security. I flew EWR-BOS and knew someone that flew to BRU.
This is still a thing in Australia at certain domestic airport terminals. Anyone can go through security, not just ticketed passengers – I really love that. Pretty cool how you could buy a ticket after take-off. I do wonder if they had many people who got on and then had “no money”. Though I guess with fares as low as theirs it wouldn’t happen much. Nice to hear you flew with them and thanks for the comment.
I flew Peoples Express in the mid 80’s from Syracuse to Newark, it was very cost effective compared to the bus and about the same time because flight was always delayed. It also was difficult when delayed because there was no way to let people know you were delayed back then, no cell phones. They also used to give you a cookie when you were boarding, and I think that was it, when other airlines like continental were feeding you meals on even short flights. It was worth what it was at the time.
Oh I don’t think it differs much today. If you’re at the airport and then the flight is delayed, you’re in the same situation as back before mobile phones. Nice to hear you flew with them though!
I flew them from Houston to New York as a child; they were fine. I sat next to an energetic young man on a soap. No idea who he was but I hoped his career went well
Hahaha! Funny the things that stick in our minds, isn’t it? Thanks for the comment!