The company was established in 1962 as Peace River Air Services by an optometrist (Mr. Smale) and a jeweller (Budd Dennis).

John MacMillan took over Mr. Smale's share of Peace Air after he was killed in an automobile accident involving a gravel truck.

In 1991 Les Gayton, aircraft mechanic, became the primary owner of Peace Air until his death from a heart attack in June 1991.

The airline was shut down in 2007, and its assets were seized to try to pay back creditors, including several small businesses, who were owed a total of $3.5 million.

[1] For people who had purchased tickets to the now defunct airline, owner Albert Cooper said they should contact their credit card company.