It began scheduled service under contract with IBM in 1970 between Manassas, Virginia, near Washington, D.C., and Dutchess County Airport near Poughkeepsie, New York. In 1986 Colgan Air received its first airline contract with New York Air operating as New York Air Connection with Beechcraft Model 99's, Beech 1900C's, and Shorts 330's. New York Air was merged into Continental Airlines on February 1, 1987, at which time Colgan became a Continental Express feeder carrier.