People Express
 

Any of you think PE would have survived in todays climate? I know this is a blast from the past:Dbut it seems to me that they would have done well in todays environment the way it stands now!They were way ahead of their time and I remember a CA I flew with quite often who said to me that what they provided would become the norm for air travel in the future...God I miss the ole days .


Flying its not just a job its an adventure.

If what they provided has become the norm it is only because they showed management that pilots would do anything to fly airplanes. It worked out for them in the sence they merged and kept a career but in reality pilots like them helped bring the profession where it is today; which ain't pretty.

No.

What happened with PE, that most of us don't know or don't remember, is a classic demonstration of unintended consequences of a seemingly great business plan. Because 'first class' became so inexpensive in a market where first class was completely through the roof; the average customer at PE rapidly drifted towards the 'bi-coastal' drug dealer. No kidding.

Therefore, you had this odd mix of regular business folks and drug dealers at flying together at the height of the cocaine scene. The business folks opted to go back to mainline carriers and somehow the drug dealer business wasn't enough to support the airline. Go figure.

It may sound like I'm making it up...but ask any F/A who worked at PE or mgmt why they started losing ground so quickly after about a year of ops.

it didn't take a pilot action to show mgt anything. if you have a business plan , you try it. if it don't work, you tweak it. sadly, airline ticket prices are not Price inelastic. demand does not stay the same if price changes high or low. THAT, my friend is what they did know about a business model.

IN a captial intensive industry and one that is mature like airlines , regrettably just like the sock or furniture industry, labor is always the place that CFOs and CEOs look to slice off fat and reduce so that they can (here comes the bad part) post good quarterlies for the board, improved earnings and they get to keep their job.

at the end of the day, Fred in the glass tower wants to keep going to the country club at any cost, cause if he loses the membership, he won't get laid anytime soon, by the biatch he is married to.

PEX was just before its time, and poorly managed. The CEO/founder was looney tunes, and they expanded WAY too much. Within 3 years they had over 80 airplanes, 737s/727s/747s and their costs were out of control.

I believe you are quite correct. The central issue, IMO, was the lack of a good management structure. :eek:

That couldn't have helped either.