Canadian Colonial Airways, Limited ("Limited") was a Canadian airline founded in 1928 in Montreal, Quebec, as a 100%-owned subsidiary of Canadian Colonial Airways, Inc. ("Incorporated"), a United States airline, notwithstanding the name. The two airlines operated joint service between New York City and Montreal.
On October 15, 1939, the American parent sold 51% of the Canadian subsidiary's stock to meet restrictions on the citizenship of owners of Canadian carriers and in March 1940, they reduced their ownership of the Canadian subsidiary further, to 24.5%.[1][2]
Pursuant to the Civil Aeronautics Act of 1938, the Civil Aeronautics Authority (CAA) of the United States certificated Incorporated as a United States scheduled airline on January 9, 1940.[3] Thereafter, the Civil Aeronautics Board (CAB), which succeeded the CAA in 1940, regulated Incorporated as a trunk carrier.
However, on August 13, 1941, the CAB rejected a permit for Limited to operate to the US as a foreign air carrier, because such permits were restricted to foreign airlines operating foreign-registered aircraft, and during the qualification period, Limited operated US-registered aircraft. The CAB directed Limited to stop flying in the United States and on June 30, 1942, Limited ceased operations.[1][2]
On April 30, 1942, Incorporated changed its name to Colonial Airlines, Inc.[2]
Surviving airline timetables for the 1928-1942 timeframe (some of which are marked as being the Canadian or American versions of the airline) show the following:[4][5]
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