People Express completed an exchange offer.

The financial troubled airline said it had successfully completed an exchange offer with debt holders to reduce its interest payments, a major condition of its acquisition by Texas Air Corp. The Newark, N.J.-based company said holders of 88.3% of the debt securities of its principal subsidiary, People Express Airlines, agreed to swap the debt for securities with lower interest rates. People Express had said that unless at least 85% of the deb tholders agreed to the concessions by the close of business Monday, it could have been forced to file for protection from its creditors.