The story of People Epress分析和总结分析和总结.docx

ThestoryofPeopleExpress

OneofthemostspectacularandregrettablerisesandfallsofaprototypelearningorganizationwasPeopleExpressAirlines.Itisfoundedin1980toprovidelowcost,highqualityairlineservicetotravelersintheEasternUnitedStates. Itgrewinfiveyearstobethenation’sfifthlargestcarrier. Butin1986,itwenttobankruptcyandwastakenover. WhathappensatPE.

PeopleExpressstartedwithaninnovationproductconcept,andthelowestcostintheindustry.

Itwasthefirstairlinefoundedafterairlinederegulation. Theairlineboastedacombinationofdeeplydiscountedfaresandfriendly,no-frillsservices(forexample,mealsandbaggagehandlingwereextracharge). FlyingPeopleExpressonmanyofitseastcoastrouteswascheaperthantakingabus. Thisquicklyattractedsomanynewcustomersthat,bythethird quarterof1982,BurrannouncedatPeopleExpress’squarterlyfinancingmeeting: “Wearenowthebiggestcarrier,intermsofdepartures,ayanyNewYorkAirport.”

Initsearlydays,withuniversalstockownership,People’semployeeshadtremendousmoralebuoyedbythecompany’srapidsuccessandexitingvision.“Ihaveneverflownonanaircraft.”Wroteonejournalistin1982,“whosehelpissocheerfulandinvestedintheirwork.”AsBurrsaid,“AtPeopleExpress,attitudeisasimportantasAltitude,”

Butthatearlyreputation,andthoselowprices,broughtdemandthatbegan,bymid-1982,tooutstripthecompany’sabilitytoserve. ByNovember1982,onethirdofthePeople ’sstaffwastemporaryhelp–fourhundredtemporariesinall. Intermsofsimpleheadcount,therewereprobablyenough“CustomerServiceManagers”,asPE’sservicepersonnelwerecalled,tokeeppace. Buttheinnovativejobrotationandteammanagementconceptsmeantthattrainingandassimilationofservicepersonneltookmuchlongerthaninmoretraditionalairlines.

Despite these difficulties, demand for PE’s deep discounted