The reference was from a 1983 Jerry Lewis film called Cracking Up: Smorgasbord. There's a 1985 movie review of the movie in the New York Times. In essence, the movie review pointed out that this film "has two sequences that are tolerable. In one, the great Milton Berle makes a brief appearance in drag. The other takes place aboard Jolly Fats Weehawken's Airline, a carrier designed for the economy-minded"
I now bring to you, from our wonderful friends at YouTube, the Jolly Fats Wee Hawkins Airline skit from the movie, broken into 3 bite sized chunks.