The "new" PeoplExpress poses a bit of a conundrum. Yes, the original PeoplExpress had a decent business plan and it might have survived absent its disastrous acquisition of the first-generation Frontier. But the original very-low-fare line mainly did point-to-point flying to/from its Newark base, where it could tap the huge New York-metro market.
By contrast, the new PeoplExpress plans to base at Patrick Henry Field in Newport News—certainly not a huge origin or destination market—and to do a lot of hubbing connections there. Initial flights, says the website, will be to Newark—a route that probably has enough traffic to support two or three daily round-trip flights—but the airline will be hard-pressed to find many more nonstop routes with that potential. The plan is to operate regional flights to/from "underserved" cities, but most underserved cities are underserved for a good reason: They don't generate enough traffic.
Prognosis: By acquiring Xtra Airways, PeoplExpress bypassed the usual start-up red tape. But it apparently still needs more investment, and its business plan is suspect.