This month, ExpertFlyer talks with Jeff Erickson, CEO of PEOPLExpress Airlines. One-time president and CEO of Trans World Airlines (TWA) and Reno Air, Erickson talks to ExpertFlyer about his latest challenge in launching a new discount airline with a familiar name.
“We’re taking a fun, creative and innovative approach to air travel, dispelling the myth that low air fares have to mean low service or an impersonal experience.”
Jeff Erickson, CEO of PEOPLExpress Airlines
It’s been three months since you sold your first ticket to fly with PEOPLExpress (PEX). How are travelers reacting to the new PEX?
People have been very receptive and supportive of our service from the beginning. We’re taking a fun, creative and innovative approach to air travel, dispelling the myth that low air fares have to mean low service or an impersonal experience. Every week more and more people are embracing our mission to restore the concepts of respect, value and excitement to the air travel experience. We’ve seen terrific support from all eight of our initial markets and we’re getting requests daily from many of our 34,000 Facebook fans requesting us to come to their market because many cities are underserved following airline consolidation or lack direct routes that are convenient for personal and business travel.
How does another new airline hope to compete against all the industry consolidation. What’s PEX’s unique value proposition to customers and how will you turn a profit?
We are taking advantage of industry consolidation, which has led to cities and routes being abandoned and some markets, like our base in Newport News, underutilized. There certainly is room for our niche business model. Our value proposition is to provide a low-cost, a la carte service model that enables customers to create a customized travel product reflecting their individual wishes and budgets. Customers can choose to fly at an ultra-low price with friendly and attentive service but minimal frills or they can opt to purchase extras they want to make their trip more enjoyable, such as priority boarding, pre-assigned seating or an upgrade to a Living Large™ seat with more personal space. While this is common in the industry, our difference is the level of service we provide and can-do attitude from check-in to arrival. It’s service and level of personal attention that makes a difference. People want to be treated with respect and know that they are heard. The team members we’re hiring for all customer contact positions are creative problem-solvers who are empowered to find solutions. That’s the PEOPLExpress difference. In terms of profit, the a la carte model, along with affordable base fares, provides the mix of revenues we need to succeed. Continue reading →