It was founded as Canadian Colonial Airways on 6 March 1928 to operate Foreign Air Mail Route No. 1 (FAM-1) from New York to Montreal via Albany, New York. Services began to Canada on 1 October 1928, in conjunction with Canadian Colonial Airways, Ltd. its 100%-owned Canadian subsidiary. The Fairchild FC-2 was among the aircraft types used.[1]
However, the CAB refused a foreign carrier permit for the Canadian subsidiary to operate to the US and directed it to cease flying to the US. The Canadian subsidiary ceased operations on June 30, 1942.[3][4]
After acquisition by a group of investors, the airline was renamed Colonial Airlines on 30 April 1942.[5][4]
Postwar period
The airline was awarded a route from Washington, D.C. to Montreal and Ottawa on 10 August 1945, followed by routes to Bermuda in May 1946. Scheduled flights to the latter began on 1 August 1947.[5] The shorter routes were operated by Douglas DC-3s and the longer routes by Douglas DC-4s.
The airline operated for a period of five years during which a fierce competition was fought for its control between Eastern Air Lines and National Airlines. After several reversals of government policy, Eastern Airlines emerged as the acquirer and the operational merger took place on 1 June 1956.[7] A few years following the merger, many of the Colonial's more rural destinations were deleted from Eastern's route network. Eastern was bought by Texas Air Corporation in 1986. In 1991 Eastern Airlines ceased operation and some of its assets were assigned to Continental Airlines. In 2010 Continental merged with United Airlines.
Fleet
At the time of the merger, Colonial had eight DC-3 and five DC-4 aircraft.[8]