The company was founded in the 1960s by an optometrist (Mr. Smale) and a jeweller (Bud Dennis). At that time all the charter flights operated after 1700 hours, when the optometrist and jeweller closed their businesses for the work day. John MacMillan took over Mr. Smale's share of Peace Air after he was killed in an automobile accident involving a gravel truck. a In 1991 Les Gayton, aircraft mechanic, became the primary owner of Peace Air until his death from a heart attack in June 1991. Mr. Gayton's widow, Winnie Gayton, ran the company until she sold all rights to Mr. & Mrs. Albert Cooper.
Peace Air head office operates at the Peace River Airport, 7 kilometers outside Peace River town limits, and also 7 kilometers outside of Grimshaw, Alberta. Approximately 98 employees (including pilots, counter agents, secretaries etc.) were responsible for managing all of Peace Air's route locations.