On January 6, 1974, while on approach to Johnstown–Cambria County Airport, the Beechcraft Model 99A operating the flight crashed short of the runway after it failed to maintain flying speed and made a premature descent below the safe approach slope for undetermined reasons.

"The nose was thrown 50-75 yards from impact, the wings were nearly shorn from the fuselage and the tail section was severed completely," a contemporary news report said.

10 of the 15 passengers aboard were killed instantly, and another died later at a local hospital, bringing the total death toll to 12.

The ramp agent drove back to the terminal and informed the controller, who notified the police department.

The National Transportation Safety Board concluded that the crash was caused by "a premature descent below a safe approach slope followed by a stall and loss of aircraft control."

On March 7, 1974, the Federal Aviation Administration revoked Air East's operator's certificate and ordered the airline to immediately halt all operations, charging Air East with using unqualified pilots and mechanically unsafe aircraft.

[5] An FAA spokesman said the shutdown order stemmed from an investigation into Air East's operations and records in the aftermath of the crash.

[5] The shutdown order stated in part: "By reason of numerous violations, unsafe practices, policies, and coercing tactics... Air East, Inc., has demonstrated that it does not possess the judgement, responsibility or compliance disposition required of a holder of an air taxi commercial operators certificate.