Just 2 years on it from it's peak in 1983, Peoples was starting to crumble due to sharper competition, overwhelmed operations, and over-expansion. By 1985, Peoples was spanning the entire country with 747 transcon service from San Francisco and LA to New York. People's had also expanded to Brussels. The downfall began in 1985 with the purchase of struggling Frontier Airlines in Denver. The system's and business model were completely incompatible. People's was purchased by founder Don Burr arch-rival Frank Lorenzo's Texas Air Corporation in 1986. In February 1987, it merged into Continental.