Canadian_Colonial_Airways,_Limited
Canadian Colonial Airways (Canada)
Canadian airline (1928-1942)
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.
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![Man standing on the staircase of an aircraft of the Canadian Colonial Airways aircraft, 1941.](http://upload.wikimedia.org/wikipedia/commons/thumb/5/5b/Animal._Mr_Thomas_%26_his_Seeing_Eye_Dog_BAnQ_P48S1P06211.jpg/320px-Animal._Mr_Thomas_%26_his_Seeing_Eye_Dog_BAnQ_P48S1P06211.jpg)
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]