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Topic: PeoplExpress Update
Username: PITrules
Posted 2013-01-09 18:48:09 and read 12548 times.

Previous thread locked; here's the latest:

"NEWPORT NEWS — A regional airport committee approved a taxpayer-funded $500,000 short-term, refundable loan for People Express on Wednesday, paving the way for the start-up airline to acquire an undisclosed charter airline and begin air service out of the Newport News-Williamsburg Airport this year.

"This will simply help People Express pull together the financing and ultimately acquire the charter airline. This is the no-risk piece," said Florence Kingston, the Newport News economic development director who heads up the Regional Air Service Enhancement committee. The RAISE committee unanimously approved the funding and the contract is expected to be signed on Friday by the Newport News Economic Development Authority.

If all goes as planned, People Express President Michael Morisi said, the charter airline and its five airplanes would be purchased by the end of February, with commercial service to start before summer begins."


http://www.dailypress.com/news/newpo...opleexpress-20130109,0,10547.story

I'm surprised they didn't go this route from the start. Its much easier to purchase an air carrier certificate than get one from scratch.

So who is the charter company with 5 airplanes? Vision Airlines has 5 according to wikipedia.

Topic: RE: PeoplExpress Update
Username: kcrwflyer
Posted 2013-01-09 18:53:32 and read 12528 times.

Wonder who they're buying. Vision doesn't have 5 737's do they? SkyKing comes to mind....

Topic: RE: PeoplExpress Update
Username: catiii
Posted 2013-01-09 18:56:30 and read 12505 times.

And who is the CEO going to be?

Topic: RE: PeoplExpress Update
Username: ERJ170
Posted 2013-01-09 19:13:16 and read 12379 times.

Xtra Airways has 5 734... Perhaps that's who they are buying.. But half a million seems cheap for an airline... Wonder what they will have to do to go from charter to scheduled...

Topic: RE: PeoplExpress Update
Username: TZTriStar500
Posted 2013-01-09 19:21:49 and read 12328 times.

Quoting ERJ170 (Reply 3):
Wonder what they will have to do to go from charter to scheduled..

They don't have to do anything with the 121 certificate except perhaps change the name or do a dba. To operate as a scheduled carrier they need a certificate of public convenience and necessity which the acquired carrier will already have if its operating scheduled service as its required to do so.

Topic: RE: PeoplExpress Update
Username: PITrules
Posted 2013-01-09 20:35:29 and read 12036 times.

Quoting ERJ170 (Reply 3):
Xtra Airways has 5 734... Perhaps that's who they are buying..

Makes total sense. It is 734's from Qantas they are looking at as well.

Quoting ERJ170 (Reply 3):
But half a million seems cheap for an airline... Wonder what they will have to do to go from charter to scheduled...

The half million is only from one source; does not include their private investment, whatever that may be.

Topic: RE: PeoplExpress Update
Username: mesaflyguy
Posted 2013-01-09 20:51:53 and read 11969 times.

Quoting ERJ170 (Reply 3):

I'd like to see something good happen to Xtra Airways. Ever since the Direct Air fiasco, they've basically just been leasing the planes to UP and NK when needed. Hopefully this will be Xtra and hopefully it will work out.

Also, if this is true, this will be a bit of a bump in planned capacity for PEOPLExpres, as they were originally grtting 733s, right?

Topic: RE: PeoplExpress Update
Username: UA735WL
Posted 2013-01-10 06:38:08 and read 11440 times.

Doesn't Xtra have a secondary base at SAT? What would Peoplexpress do with that (if they indeed do purchase Xtra)? It doesn't seem like a good initial destination for them. .

Topic: RE: PeoplExpress Update
Username: nkops
Posted 2013-01-10 07:21:55 and read 11284 times.

Quoting mesaflyguy (Reply 6):
Ever since the Direct Air fiasco, they've basically just been leasing the planes to UP and NK when needed. Hopefully this will be Xtra and hopefully it will work out.

Xtra had actually picked up the Caesars flying out of ACY for the last 5 months since Caesars got rid of Gold... however, that ends today with RP starting in ACY.

SkyKing might be who they are looking at... currently, they are only doing the Cuba flights. (also lost ACY contract)

Topic: RE: PeoplExpress Update
Username: stlgph
Posted 2013-01-10 07:28:48 and read 11246 times.

If the exact text from above is correct, I hope the name is 'People Express' and not 'PeoplExpress'

Topic: RE: PeoplExpress Update
Username: catiii
Posted 2013-01-10 08:20:47 and read 11096 times.

Quoting stlgph (Reply 9):
If the exact text from above is correct, I hope the name is 'People Express' and not 'PeoplExpress'

It's the same stylization as the original PEOPLExpress from the 1980's.

Looking at their website they appear to have gone a number of changes already at the upper echelons of the company. A number of the people originally listed in key leadership positions are no longer there. And, again, they still do not have a CEO after saying that an announcement on that position was forthcoming some time ago.

Topic: RE: PeoplExpress Update
Username: stlgph
Posted 2013-01-10 08:24:40 and read 11077 times.

Quoting catiii (Reply 10):
It's the same stylization as the original PEOPLExpress from the 1980's.

Bad move 1.

Quoting catiii (Reply 10):
they still do not have a CEO after saying that an announcement on that position was forthcoming some time ago.

The CEO will come in after the financing comes into place, if ever. The largest investor in the total pool gets to have a say in appointment of the CEO.

Topic: RE: PeoplExpress Update
Username: bennett123
Posted 2013-01-10 08:26:31 and read 11059 times.

I understand that it is a refundable loan, (no sure how that differs from any other loan).

What happens if they go into Chapter 11?.

Topic: RE: PeoplExpress Update
Username: ItalianFlyer
Posted 2013-01-10 09:28:10 and read 10855 times.

ROTFL at the hyperbole 'Because Newport News would be the world headquarters for People Express, the airline....."
Elk Grove/Willis Tower, Euless, Virginia Ave, the Sand Castle, now Newport News....LOL.

Serious, this is the most realistic thing to come from World Hdq since it's inception.

Topic: RE: PeoplExpress Update
Username: catiii
Posted 2013-01-10 11:12:25 and read 9601 times.

Quoting stlgph (Reply 11):
The CEO will come in after the financing comes into place, if ever. The largest investor in the total pool gets to have a say in appointment of the CEO.

The word around this time last year was that a new CEO was already signed, but they couldn't announce it until April because they were working through a non-compete that he had because he is the former CEO of another airline.

Topic: RE: PeoplExpress Update
Username: stlgph
Posted 2013-01-10 11:16:17 and read 9558 times.

Quoting catiii (Reply 14):
The word around this time last year was that a new CEO was already signed, but they couldn't announce it until April because they were working through a non-compete that he had because he is the former CEO of another airline.

Possible, too, which could signal severe confidence in the investment coming through to fund the airline. The CEO's appointment is ultimately going to have to get approval from the largest investors.

Topic: RE: PeoplExpress Update
Username: enilria
Posted 2013-01-10 11:22:51 and read 9483 times.

Quoting catiii (Reply 14):
The word around this time last year was that a new CEO was already signed, but they couldn't announce it until April because they were working through a non-compete that he had because he is the former CEO of another airline.

That would be Bob Fornaro almost certainly, but I don't know if that isn't just wishful thinking. If they got him it would add enormous credibility.

Topic: RE: PeoplExpress Update
Username: LOWS
Posted 2013-01-10 11:58:51 and read 9140 times.

Quoting catiii (Reply 14):
The word around this time last year was that a new CEO was already signed, but they couldn't announce it until April because they were working through a non-compete that he had because he is the former CEO of another airline.
Quoting enilria (Reply 16):
That would be Bob Fornaro almost certainly, but I don't know if that isn't just wishful thinking. If they got him it would add enormous credibility.

I thought it was the guy from Pinnacle who drove them into bankruptcy.

Topic: RE: PeoplExpress Update
Username: N1120A
Posted 2013-01-10 17:17:19 and read 6791 times.

Quoting catiii (Reply 2):
And who is the CEO going to be?

Not Frank Lorenzo  

Topic: RE: PeoplExpress Update
Username: dragon6172
Posted 2013-01-10 17:41:10 and read 6619 times.

Quoting ERJ170 (Reply 3):
Xtra Airways has 5 734.

Quite possible. There was a 734 of theirs that flew in here (KPHF) a few months ago and parked in front of the hangar this new airline is supposedly going to be using. Maybe just a coincidence, but have not seen them here before or since. It should be noted that the hangar is on the opposite side of the airfield from both of the local FBO's, not a normal place I see aircraft go.

Topic: RE: PeoplExpress Update
Username: mesaflyguy
Posted 2013-01-10 18:12:30 and read 6408 times.

Quoting nkops (Reply 8):

Didn't know that, thanks for the info!  Still good to see those old beauties getting some work!  

Topic: RE: PeoplExpress Update
Username: zippyjet
Posted 2013-01-10 20:19:08 and read 6070 times.

Quoting N1120A (Reply 18):

Is it an urban legend or a reality that Frank Lorenzo (the evil one) is banned from our industry as a CEO or any other kind of leadership position?

Topic: RE: PeoplExpress Update
Username: apodino
Posted 2013-01-10 21:55:27 and read 5944 times.

I heard it was going to be Phil Trennary, but the Pinnacle NDA is what is preventing him from formally being named.

Topic: RE: PeoplExpress Update
Username: sunking737
Posted 2013-01-11 05:19:57 and read 5718 times.

Quoting ERJ170 (Reply 3):
Xtra Airways has 5 734... Perhaps that's who they are buying.. But half a million seems cheap for an airline... Wonder what they will have to do to go from charter to scheduled...

IIRC Xtra is doing flying for MN based Caljet Air into Mexico.

Maybe they just bought Island Air (WP) and they will use their AOC???

Topic: RE: PeoplExpress Update
Username: stlgph
Posted 2013-01-11 05:34:37 and read 5699 times.

Quoting zippyjet (Reply 21):
Is it an urban legend or a reality that Frank Lorenzo (the evil one) is banned from our industry as a CEO or any other kind of leadership position?

He's not 'banned' from running an airline but his practices of gutting union contracts are now banned by changes in bankruptcy law.

Lorenzo is chairman and founder of Savoy Capital

http://www.savoycap.com/about.htm

He's also VP: Quality at X-Fab Semiconductor Foundaries AG

Topic: RE: PeoplExpress Update
Username: enilria
Posted 2013-01-11 06:07:52 and read 5782 times.

Quoting LOWS (Reply 17):
I thought it was the guy from Pinnacle who drove them into bankruptcy.
Quoting apodino (Reply 22):

I heard it was going to be Phil Trennary, but the Pinnacle NDA is what is preventing him from formally being named.

That would be a pretty terrible hire. He has zero marketing experience and that's what they most need. Fornaro would be much better. I'd vote for Menke over Trannary, although they each have their own weaknesses. A marketing/planning VP from B6 would also be another good choice. A Monty Brewer or a Marty St. George or somebody like that. They do not want an Ops-centric guy to launch this thing. It'll plow into the ground financially.

Quoting stlgph (Reply 24):
He's not 'banned' from running an airline but his practices of gutting union contracts are now banned by changes in bankruptcy law.

I'd argue that the practices now allowed in airline Ch11s go beyond anything he did in terms of union busting. They just found a way around the "Lorenzo laws".

Topic: RE: PeoplExpress Update
Username: enilria
Posted 2013-01-11 06:10:56 and read 5787 times.

Another thread says Ryan Int'l is shutting down. They should grab that certificate before it gets stale.

Topic: RE: PeoplExpress Update
Username: NorthStarDC4M
Posted 2013-01-11 06:16:07 and read 5882 times.

Quoting stlgph (Reply 24):

Quoting zippyjet (Reply 21):
Is it an urban legend or a reality that Frank Lorenzo (the evil one) is banned from our industry as a CEO or any other kind of leadership position?

He's not 'banned' from running an airline but his practices of gutting union contracts are now banned by changes in bankruptcy law.

He's not banned, but I don't think the DOT and DOJ would go easy on him either if he wanted to run an airline again. The judges ruling ousting him from Eastern stung him, he's said that in many interviews, so i doubt he's want back in anyways.

Topic: RE: PeoplExpress Update
Username: stlgph
Posted 2013-01-11 06:38:32 and read 5816 times.

Quoting NorthStarDC4M (Reply 27):
He's not banned, but I don't think the DOT and DOJ would go easy on him either if he wanted to run an airline again.

In 1994 he attempted a start up but the DOT blocked the application. A lot of people Lorenzo pissed off are now holding fort at DOT and the DOJ. He could get around it with a huge hostile take over of an airline, in the style of Carl Icahn, but he's 72 now and it's just not worth it for him to put up with the time and effort and money for that legal battle. He's better off having a heyday running his own fund, which basically just invests and re-invests all his money.

Topic: RE: PeoplExpress Update
Username: PMUA787
Posted 2013-01-11 07:54:40 and read 5715 times.

Quoting enilria (Reply 16):
That would be Bob Fornaro almost certainly

Bob Fornaro would be a good choice as he did a good job at FL as CEO and before Joe Leonard's right hand man as CFO.

Topic: RE: PeoplExpress Update
Username: enilria
Posted 2013-01-11 08:14:32 and read 5664 times.

Quoting PMUA787 (Reply 29):
Quoting enilria (Reply 16):
That would be Bob Fornaro almost certainly

Bob Fornaro would be a good choice as he did a good job at FL as CEO and before Joe Leonard's right hand man as CFO.

Plus, Wall Street would take interest. Trennary is a huge mistake.

Topic: RE: PeoplExpress Update
Username: B727FA
Posted 2013-01-11 10:33:11 and read 5524 times.

I thought he was banned hence his Allegro outfit out of CUN b/c he had no other way to get back in to play. Perhaps "all but banned" (ie through roadblocks, DOT issues, etc.) would be a more accurate way to think of it?

Topic: RE: PeoplExpress Update
Username: F9animal
Posted 2013-01-11 18:32:17 and read 5215 times.

I heard Mike Conway and Potter former F9 CEO. Plenty of good talent out there!

Topic: RE: PeoplExpress Update
Username: allegiantflyer
Posted 2013-01-11 18:56:30 and read 5156 times.

Charter airline? charter airlines arent doing so well right now.I though these where going to be scheduled,darn

Topic: RE: PeoplExpress Update
Username: kcrwflyer
Posted 2013-01-11 20:11:36 and read 5081 times.

Quoting allegiantflyer (Reply 33):
Charter airline? charter airlines arent doing so well right now.I though these where going to be scheduled,darn

Gotta read my friend. People Express doesn't have a certificate to fly airplanes. They are buying a charter airline so that they can use that airline to start flying scheduled flights for them. At least that's what I'm getting from this.

Topic: RE: PeoplExpress Update
Username: sunking737
Posted 2013-01-12 06:57:50 and read 4847 times.

Well with Ryan International closing its door yesterday due to changing their bankruptcy from Chap. 11 to 7, We know have a clue to who they are going to buy for an AOC. Jeff Potter is their CEO.

Topic: RE: PeoplExpress Update
Username: GSPSPOT
Posted 2013-01-12 11:50:26 and read 4599 times.

I know it's not the ideal time/economic environment for start-ups, but I really hope this iteration of PeopleExpress is a success! I have a soft spot in my heart for the Hampton Roads area, and PHF.


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