Underutilized in the 1970s, Newark expanded dramatically in the 1980s. People Express struck a deal with the Port Authority to use the North Terminal as its air terminal and corporate office in 1981 and began operations at Newark that April. It grew quickly, increasing Newark's traffic through the 1980s. Virgin Atlantic began service between Newark and London in 1984, challenging JFK's status as New York's international gateway (but Virgin Atlantic now has more flights at JFK than at Newark). Federal Express (now known as FedEx Express) opened its second hub at the airport in 1986. When People Express merged into Continental in 1987, operations (including corporate office operations) at the North Terminal were reduced and the building was demolished to make way for cargo facilities in the early 1990s. This merger started Continental's and later United Airlines', dominance at Newark Airport.