New York Air’s existence was not without difficulty. Many flights were affected by the PATCO air traffic controllers’ strike early on. Meanwhile, the airline’s non-union operation drew much discontent from pilots’ unions as well as within the company itself.
Despite being an otherwise successful airline, the decision was made within the Texas Air Group to consolidate it into Continental Airlines in 1987. A transitional scheme on the aircraft replaced the stylized “Big Apple” with the Continental Meatball, and additional titling signified that New York Air was under new ownership. Eventually, the airline was fully absorbed and would fade from existence.