September 15, 1986, People closed its doors and re-opened as part of Texas Air.  Peolpe Express opended its doors in 1980, when former president, Donald Burr and several previous key executives of Texas International Airlines in a joint venture formed People Express. The carrier based out of Newark, New Jersey would provide service between New Jersey and New York and several northeast states. With the introduction of People Express to the airline market, it further eroded the industry the airline industry with slashed air fares and non union employees.

This had created airfare wars throughout the industry. Many air carriers attempted to slash their fare as well go from union personnel to non-union employees in an effort to maintain their market share. As a result airfare profits were down and it had cost the industry over 70 million dollars in the first nine months of 1980. Frank Lorenzo, owner of Texas Air was a pioneer of such business tactics; slashing airfares and union busting.