Business Notes Airlines

People Express built its reputation on cheap, no-frills flights and a "single class" service that catered to families and vacationers and left the business-travel market to the bigger carriers. But wait--what was that showing up at People last week? A smattering of pinstripes? Sure enough, People said it plans to install first-class cabins, now available on only a few long-haul 747 flights, in all 80 of its planes. In addition, the upstart airline began a frequent-flyer promotion similar to those offered by other major carriers. Such programs, which enable customers who fly often to earn free trips or other gifts, have proved to be especially popular with business travelers.

A few changes are clearly needed at People. The airline lost customers and an estimated $67 million from October through March, as rival carriers slashed fares.