People Express Airlines (PEOPLExpress) was an innovative low-cost carrier that emerged during the early 1980s, a period characterized by deregulation in the U.S. airline industry. Founded by former Texas International Airlines executive Donald Burr, the airline commenced operations on April 30, 1981. The inaugural flights were from Newark International Airport, using a fleet of aging Boeing 737-100 aircraft.

The History of People Express

Eduard Marmet, CC BY-SA 3.0 GFDL 1.2, via Wikimedia Commons

People Express modelled its business on Freddie Laker’s Skytrain in the UK.

The airline quickly became known for its pricing structure, which was revolutionary at the time. Passengers paid for basic services such as checked luggage and in-flight meals separately, a model that foreshadowed practices widely adopted by low-cost carriers decades later. The airline’s aggressive pricing and employee ownership model attracted attention, leading to rapid expansion. By 1983, People Express was flying coast-to-coast, and by 1984, the airline had expanded its fleet to include Boeing 727s and 747s, enabling transatlantic flights.

Demise of People Express

Rapid expansion came at a cost. People Express’ operational model struggled to keep up with its growing network. Service quality suffered, and the once-celebrated low fares were offset by the inconvenience and chaos of overcrowded flights and poor customer service. The airline’s operational inefficiencies and mounting debt became increasingly problematic. In 1985, People Express acquired Frontier Airlines, which further stretched its resources thin.

The beginning of the end for People Express came in 1986. Unable to sustain its growth and facing increasing competition from both legacy carriers and new low-cost entrants, People Express was forced to seek a buyer. On September 15, 1986, Texas Air Corporation, the parent company of Continental Airlines, announced it would purchase People Express. The merger was completed on February 1, 1987, and People Express was fully integrated into Continental Airlines, effectively marking the end of its brief, but impactful, existence. The legacy of People Express lives on, not only as a pioneer of low-cost air travel but also as a cautionary tale about the risks of rapid expansion without a solid operational foundation.

People Express 737-100 Fleet

Photo (c) Aero Icarus

The initial choice of aircraft was notable, as the 737-100 was the first model in Boeing’s now-iconic 737 series, but by the time of People Express’ launch, these jets were nearing obsolescence in the eyes of many industry insiders.

The entire fleet of 737-100s operated by People Express had previously been flown by Lufthansa, the launch customer for the type.

Lufthansa had launched 737 service in early 1968, but as the larger 737-200 became available it sought to sell off these smaller variants. People Express took advantage of the cheap price in acquiring 17 of these aircraft.

The reliability and self-sufficiency of the 737 showed that, like with Southwest Airlines a few years earlier, the aircraft could be operated on quick turnarounds with very affordable costs.

The full fleet comprised:

• N401PE (19018/9) 737-130
• N402PE (19019/10) 737-130
• N403PE (19020/11) 737-130
• N404PE (19021/15) 737-130
• N405PE (19022/17) 737-130
• N406PE (19023/23) 737-130
• N407PE (19024/26) 737-130
• N408PE (19025/32) 737-130
• N409PE (19026/35) 737-130
• N410PE (19027/52) 737-130
• N411PE (19028/98) 737-130
• N412PE (19029/108) 737-130
• N413PE (19030/113) 737-130
• N414PE (19031/118) 737-130
• N415PE (19032/119) 737-130
• N416PE (19033/120) 737-130
• N417PE (19794/127) 737-130

As you can see, these are some of the oldest Boeing 737s built, with the first example, N401PE, being the 9^th example built.

Lufthansa 737-100. Photo (c) Aero Icarus

You can also tell from the -130 variant that these were built for Lufthansa (whose customer code was 30).

The first aircraft to join the People Express fleet was N407PE in March 1981, with the rest arriving throughout 1981 and into 1982.

The 737-100 Fleet Post Merger

Photo (c) Aero Icarus

Wearing the later Continental Airlines livery, shortly before retirement. Photo (c) Aero Icarus

Once People Express had merged with Continental Airlines, the fleet of 737-100s continued to fly, with new titles and logos, and a new route network to operate on.

All aircraft in the fleet transferred to Continental Airlines on 1^st February 1987, retaining their registrations initially and later taking on new registrations.

Following this, the aircraft mostly flew for Continental Airlines until 1990 or 1991, before being scrapped.

SARO in Mexico bought three of the aircraft.

Three aircraft, N410PE, N416PE and N417PE, were sold to Mexican carrier SARO as XA-RSY, -RSW and -RSZ respectively in 1991.

Sadly none still exist today.

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