1. Founded in 1980 by Don Burr who left Texas International as its President. 2. 15 top managers of TI follow Burr to join People. Shows personal charisma and resourcefulness of Don Burr. 3. Bob McAdoo, managing officer in charge of finance. Lori Dubose, director of human resources at TI. - Left TI to join People. 4. Govt deregulation key factor in motivating Burr.
5. People Express set to experiment with and set benchmarks of innovative management for others to follow. 6. Burr wanted PE to serve as a role model for others. He defines his own way of doing "good business". 7. Six precepts for PE's functioning.
8. "Path" theory as modus operandi.
Concepts behind PE's philosophy:
1. Marketing Strategy
* extremely low fares- 44 to 55% below standard
* convenient flight schedules - broadening mkt segment by roping more people. * regionwide identity - making the image of PE known across entire eastern US * "smart" air travellers - target for smart, thrifty, busy travellers rather than ppl lookin for exotic features * positive atmosphere on board
2. Cost Structure
* Greater fuel efficient aircraft.
* Low labour costs – employees were intelligent, well-trained, flexible, etc. fewer people needed * Cross utilization and rotation
* Facilities – no air tkt counters, only travel agents and on board CSM’s. * Reservations – extremely simple, fast and inexpensive. No interline arrangements, hotel bookings, etc. 3. People
* Burr considered employees of People and concerned policies to be unique and what made People successful.
Structure and Policies
1. Minimal hierarchy- only three formal levels of authority 2. Ownership in terms of shares and promise of job security. 3. Cross utilization and rotation of employees. Employees rotated and cross utilized between line and staff...