PeoplExpress suspends flights; Virginia-based startup had launched with a familiar name

Start-up airline PeoplExpress says it is suspending flights because of problems including a shortage of crews, but it hopes to resume flying next month.

The airline based in Newport News, Virginia, said Friday that it was processing refunds for passengers holding tickets through Oct. 15. The company says travelers booked on later flights will get an email once plans for resuming service on or about Oct. 16 are complete.

PeoplExpress, which took its name from another airline that operated in the 1980s, started flying on June 30 and offered flights to seven destinations from Newport News.

The airline says it struggled to operate a full schedule due to aircraft, crew-availability and maintenance issues. One plane was damaged by a vendor's truck, and the airline lacked a planned spare aircraft.