People Express was an American pioneer in the world of low-cost carriers that took innovative steps to stand out and attract flyers. Helmed by Don Burr, a former Texas International Airways executive, People Express was launched in 1981 with the goal of providing ultra-low-cost, no-frills air travel to relatively underserved destinations. Passengers would pay cash on board the plane instead of paying in advance or at the check-in counter and would be charged for amenities such as checked baggage and in-flight refreshments — a practice still employed by modern-day low-cost carriers.
The company’s structure and operation were also unusually egalitarian, especially for an airline. For instance, staff were given shares in the company, making them all owners of the airline. Beyond their shared ownership of the airline, employees also had shared job roles. For instance, pilots would double as baggage handlers, sales personnel would staff the check-in counter, and members of the finance team would also be flight attendants. These steps were taken to minimize costs and ensure that every employee interacted with the customer, as the airline relied on being people-centric and more than just the corporate behemoths the Big Three had become.
Unfortunately, the Big Three did not take People Express’ growth lightly and quickly took steps to counter it, slashing their own ticket prices to neutralize the latter’s main selling point. Combined with skyrocketing debts, this led to People Express’s sale to Texas Air Corporation, which merged with Continental in 1987.
[Featured image by MercerMJ via Wikimedia Commons | Cropped and scaled | CC BY-SA 2.0]
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