People-Frontier Deal OKd

The government today gave the final go-ahead to People Express Airlines to purchase Frontier Airlines in a $300-million deal that creates the fifth largest passenger carrier in the nation.

The action by the Transportation Department came in the form of an exemption to People Express to federal regulations that would have required government approval of the acquisition. A Transportation Department spokesman said the Newark, N.J., low-fare airline will not have to go through hearings to justify the purchase.