and budget-conscious fliers could reduce the price of their fare by not purchasing drinks, or food, or by carrying on their baggage. The airline also chose to base its operations in Newark, rather than in a more popular airport, reducing the convenience to customers but also keeping its operating costs low.
The airline also engaged in other activities that enabled it to charge low fares but also reduced the level of service that customers received. For example, ticketing was done on board the aircraft, instead of at ticketing counters. The reservation system was not tied in with the systems of other airlines or car rental agencies (a common device that enables airlines to gain maximum exposure in the market), which permitted it to use inexpensive equipment.
The aircraft that People Express purchased were used aircraft from other carriers. This reduced the initial cost of beginning the airline, but did not reduce the level of service associated with the aircraft. It is not likely that most passengers could easily identify an airplane which was two years old, and one which was ten years old. Galleys and first-class seats were removed from these planes to make room for additional seats, with the result that the aircraft held more passengers than most customers would otherwise expect.
The internal structure at People Express was vastly different not only from other airlines, but from other companies in general. In the beginning, there were seven managing officers, 9 general managers and 50 team managers. Every employee in the company was designated a "manager," with pilots designated "flight managers," mechanics and technicians designated "maintenance managers," and reservation agents, ticketing agents and in-flight personnel designated "customer service managers."
Burr settled on this designation of employees to emphasize the latitude that every employee had in making decisions. There were no central managers or superv...