Competition with TCA
CP Air competed with the government-owned Trans-Canada Air Lines (TCA, later Air Canada) for international and transcontinental routes for much of its history. Despite early attempts to merge into one national carrier, CP Air continued to operate routes based on its previous bush flying heritage.
The federal government established limits on domestic market share and, through international agreements, limits on which countries CP Air could fly to. This barred CP Air from the traditional routes such as London and Paris and limited their access to major Canadian routes such as Vancouver-Toronto and Toronto-New York.
Overseas and international routes
The development of the great circle or polar route to the Far East from CP Air's Vancouver base would become one of the cornerstones of the airline. Grant McConachie managed to secure flights to Amsterdam, Australia, Hong Kong, and Shanghai,[4] which helped the airline's revenue grow from $3 million in 1942 to $61 million by 1964. Flights to Sydney via stops in Honolulu, Kanton Island (which was a technical stop) and Fiji as well as to Hong Kong via Tokyo (preceded by a technical stop at Shemya Island in Alaska) started in 1949, with Canadair North Star aircraft (which was a version of the DC-4); Douglas DC-4s then took over in 1951 followed by Douglas DC-6Bs in 1953.[5] Flights to Lima, Peru started in 1953 (extended to Buenos Aires in 1956) and to Amsterdam in 1955. In August 1956 three Douglas DC-6B flights a week departed Vancouver for Amsterdam, with two flights departing for Tokyo and Hong Kong, one flight to Auckland, one flight to Sydney, and one flight to Buenos Aires.
Several of the key routes in the early days were as follows:
Other routes duplicated parts of the above, but from the 1959 Intercontinental Timetable these appear to be the main routes, and show the inventiveness that Canadian Pacific Airlines needed to employ and how they developed other overseas routes for Canada. The airline was flying DC-4s and DC-6Bs internationally in the 1950s, introducing turboprop Bristol Britannia aircraft in 1958. Douglas DC-8 jetliners began to replace them from 1961, but the Britannias continued on routes that were unsuitable for the new jets well into the 1960s – for example on the route to New Zealand until Whenuapai closed to civil traffic in November 1965. The big Britannia propjet was also used to fly non-stop service from Windsor, Ontario to Mexico City with this flight originating in Toronto before being replaced by a DC-8.[6] Closer to home, non-stop Boeing 737-200 service from Vancouver to San Francisco was being flown by 1970 followed by non-stop Boeing 727-100 service from Vancouver to Los Angeles by the mid-1970s.[7] Also during the mid-1970s, CP Air was operating stretched Douglas DC-8-63 jetliners (which the airline called the Super DC-8 "Spacemaster") on the Vancouver-Honolulu-Nandi-Sydney route twice a week.[8] Service to New Zealand resumed in 1985 along with non-stop flights from Vancouver to Hong Kong, and in 1986 CP Air became the first North American airline with a non-stop flight between North America and Mainland China with a weekly flight to
- Flight numbers 1 & 2, flying Hong Kong – Tokyo – Vancouver – Edmonton – Winnipeg – Toronto – Montreal
- Flights 301/302, flying Sydney – Nadi – Honolulu – Vancouver – Edmonton, and non-stop via the Polar route to Amsterdam. Other flights to Europe included Lisbon, Milan, Rome, and Athens.
- Flights 401/402, flying Vancouver, Mexico City, Lima, Santiago and Buenos Aires
- Flights 501/502, Mexico City – Toronto – Santa Maria (Azores) – Lisbon – Madrid
Open skies
By the late 1970s and early 1980s, many of the routes CP Air had pioneered such as Vancouver–Tokyo were now very lucrative and the previous distribution of routes was considered unfair. In 1979, the federal government eliminated the fixed market share of transcontinental flights for Air Canada (the successor to TCA). While this was a condition that was pressed by CP Air for a long time, it now scrambled to upgrade its fleet to expand on newly available routes such as new nonstop service from Vancouver to Hong Kong and Shanghai to go along with adding more flights to its then current routes like Amsterdam, Rome, Tokyo and Sydney to prepare for increased competition from Air Canada in its traditional territory. This required massive fleet renewal and an associated debt of $1 billion.
This debt load, the increased competition, and the economic downturn in Asia would all work against CP Air's future.
Rebranding and sale
Having been renamed CP Air in 1968 with a new orange livery, the airline in 1986 reverted to its original name, Canadian Pacific Air Lines, with a new navy blue colour scheme and logo. This occurred shortly after the airline had taken over operations of Eastern Provincial Airways.
This new incarnation, however, was short-lived. Less than a year later, in 1987, Canadian Pacific Air Lines was sold, along with Quebec's Nordair, to Calgary-based Pacific Western Airlines (PWA) for $300 million.[9] PWA assumed the airline's debt of $600 million. In April 1987, PWA announced that the new name of the merged airline would be Canadian Airlines International. In 2001, Canadian Airlines was taken over by and merged into Air Canada.
