People Express Airlines People Express Airlines represented

When People Express began operations in 1981, the airline industry had only recently been deregulated. It was in a state of upheaval with many new entrants, most of whom would not survive their first year of operation, and giants such as United and American jockeying for domination. Airline travel at this point was essentially a commodity, with price being the overwhelming determining factor as to which carrier customers selected. In addition to price, travelers were interested in ontime service and convenience (based on the destination cities served by an airline). There were several types of service available on board most flights, including first class, where passengers received free al

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t and providing the highest level of customer service possible. Recognizing that he was attempting to build a new market niche, Burr told his employees that their personal interaction with customers should make any flight the most pleasant that the customer had ever had. This, in turn, would result in increased word of mouth advertising and repeat business. External Environment Initially, People Express faced competition only from other local carriers. These carriers did not have the same low cost structure that Burr enjoyed, with the result that they could not match People Express in terms of price. People Express used its early success in the marketplace to purchase airlines, gaining access to additional aircraft and additional cities. The company stayed away from markets where American and United competed, and continued to emphasize price as its main selling point. There were distinct limitations to the growth that the company could generate, however. It was not able to gain gate access to Los Angeles, for example, and adding to its fleet of aircraft was not an inexpensive proposition. The 1980s also saw a decrease in the number of airlines that operated, and an increase in the size of airlines. There were a number o
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Approximate Word count = 2908
Approximate Pages = 12 (250 words per page)

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