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...
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