[2] Thereafter, the Civil Aeronautics Board (CAB), which succeeded the CAA in 1940, regulated Canadian Colonial Airways as a trunk carrier.

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.

By 1956, Colonial's executive offices were on Park Avenue in New York City and it was flying several routes including five daily nonstop DC-4 flights between LGA and Montreal.

It also operated a nonstop DC-4 flight departing LGA at 11 am EST to Bermuda, arriving at Kindley Field 3:35 pm AST, with timetables advertising a "full course hot meal" served en route.

After several reversals of government policy, Eastern Airlines emerged as the acquirer and the operational merger took place on 1 June 1956.