[7] Following its launch, New York Air quickly expanded and established a hub operation in LaGuardia, with new service to Cleveland beginning in April 1981,[8] as well as smaller focus cities in Boston and Washington National.

In order to ease delays, the Federal Aviation Administration reduced the number of available slots in Northeastern airports, forcing airlines to cut flights.

Due to New York Air's small fleet, it was unable to follow a similar tactic, and its shuttle service was heavily damaged by the slot restrictions.

This, as well as Eastern's larger aircraft flooding the market, led to New York Air ending its Boston service after less than a year in operation.

[9] To maintain a presence in Boston, the airline established a hub at Logan Airport, offering service to Baltimore and Orlando.

Meehan denied this, stating that New York Air was "completely separate from Texas International" and would be prepared to negotiate contracts if its staff chose to unionize.

[10] In what ALPA described as a 'desperate attempt' to gain business, the airline began offering limited-time 29 cent fares, which could only be purchased in-person.

Images of these crowds were broadcast by local media, who then repeated ALPA's claims and brought attention to its campaign against the airline.

ALPA picketers also handed out anti-New York Air leaflets and material to those waiting to purchase promotional fares.

ALPA planned to begin picketing at Newark Airport, however then began winding down the campaign in order to focus on supporting the 1981 Air Traffic Controllers strike.

In July 1982, Meehan resigned as president, and was subsequently replaced by Michael E. Levine, who was appointed as chairman in February.

[15] Under Levine's leadership, New York Air repositioned itself as a full-service airline and began targeting business passengers with premium service but still at fares which were typically lower than on competing carriers.

The airline also began offering complementary bagels on morning flights, as well as wine and newspapers, allowing the shuttle to compete more effectively with Eastern.

A private boarding lounge known as the 'Apple Club' was offered to passengers connecting through Raleigh, reinforcing New York Air's new premium model.

[21] By the end of 1983, the airline was profitable for the first time, and began ordering larger McDonnell Douglas MD-80 aircraft to supplement its DC-9 fleet.

By the end of 1985, New York Air had 35 flights a day from Dulles, and eventually made the airport its main operational focus.