Founding and rapid expansion The company was founded by
Don Burr, and several others, who resigned from
Frank Lorenzo's Texas International in order to do so. Burr was influenced by British airline entrepreneur
Freddie Laker, whose forays into low-cost air travel attracted much press in the 1970s. Terminal space was leased at
Newark Airport's North Terminal. at
London Gatwick Airport People Express was launched on April 30, 1981, with
Boeing 737 flights from
Newark to
Buffalo,
Columbus and
Norfolk;
Jacksonville and
Cleveland Hopkins were added a month later. In December PE had 42 weekday departures from EWR to
Baltimore/Washington,
Boston Logan,
Burlington,
Buffalo Niagara,
Port Columbus,
Jacksonville,
Norfolk,
Sarasota-Bradenton,
Syracuse Hancock and
Palm Beach plus some flights around the periphery of the hub-and-spokes. On May 26, 1983, People Express began non-stop flights from
Newark to London's
Gatwick Airport with a leased
Boeing 747-227B previously operated by
Braniff International Airways. Flights started at $149 each way. The route was an instant success with all flights sold out. {{Rail freight The airline used a simplified fare structure. All seats on a route were offered at the same price except for slightly lower "off-peak" fares. All seats were in economy class except for "Premium Class" on Boeing 747 flights which featured two class service. Fares were paid in cash aboard the aircraft early in the flight. Passengers were permitted to bring one carry-on bag for free and each checked bag cost $3.00. People Express was the first United States airline to charge a fee for each checked bag. People Express also charged modest amounts for customers wanting food or beverages. Sodas cost 50¢ per can, beer cost $1 per can, honey-roasted peanuts and Rachel's brownies were also 50¢, and the People Express "snak-pak" (an assortment of cheeses, crackers, and salami) cost $2. By 1986, People Express was offering
first class in addition to
coach seating on all of its Boeing 747 aircraft. A full color print ad at the time stated: "AHHH....THE THINGS SOME PEOPLE HAVE TO DO TO SAVE MONEY. Introducing People Express First Class. Spacious leather seats, two abreast. Service beyond compare. Fine china, crystal and linen. Fresh flowers....A price lower than most standard coach fares on other airlines." This first class service was available on transatlantic flights between Newark and Europe, on transcontinental flights between Newark and California, and on 747 flights between Newark and Denver.
Acquisitions of other airlines In 1985 People Express bought out
Denver-based
Frontier Airlines. The cover of the May 1, 1986, People Express timetable had the following message: "We're Flying The Widest Plane To The Highest Place: Introducing The 747 Service From New York To Denver. PEOPLExpress & Frontier" This 747 service linked the People Express hub at
Newark Airport with the Frontier hub in Denver. The combined company operated flights to most major U.S. cities as well as international service to
Brussels and
London. People Express also bought two commuter air carriers,
Britt Airways in the
U.S. Midwest and
Provincetown-Boston Airlines (PBA) which served New England and Florida. By June 1985, People Express had lost $5.8 million on operating income of $18.7 million. Due to concerns about regulatory approval for the purchase, Texas Air first purchased the assets of Frontier from People Express in a separate transaction worth $176 million and then merged Frontier into
Continental Airlines, another Texas Air subsidiary. People Express ceased to exist as a carrier on February 1, 1987, when its operations were subsequently merged as well into Continental Airlines via a joint marketing agreement. Continental maintained the Newark hub built by People Express, which passed to
United Airlines after United and Continental merged in 2010. People Express's spartan, no-frills service earned the carrier several derisive nicknames, including "People Distress" and "Air Bulgaria" (a sarcastic reference to the poor customer service associated with
Eastern Bloc countries during the
Cold War). ==Destinations in 1986==