PEOPLExpress secures Newark rights ahead of launch

PEOPLExpress could launch operations during the current quarter Steve Shatsky, Vice President of Marketing, has told Airchive magazine. Shatsky told the publication in an interview that three leased B737-400s, likely sourced from Xtra Airways, would be used for initial operations with each configured to carry 150 passengers.

In terms of the airline's planned initial destinations, the start-up has secured morning and evening slots at Newark though plans to serve Washington National are still on hold pending regulatory approval, he said.

It was also disclosed that the vaunted buy out of Xtra Airways never in fact closed owing to undisclosed issues uncovered during the due diligence process.

"Not closing the deal was a setback to certification efforts with the DOT and FAA, but not a deal breaker as the airline has worked an arrangement to launch PEOPLExpress branded flights using their own public reservations system under the operating certificate and control of another carrier," the report stated.

PEOPLExpress founder Mike Morisi and other staff are attempting to recapture the glory days of the start-up's now defunct predecessor, PeoplExpress (1980)
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