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. 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 2000, Canadian Airlines was taken over by and merged into Air Canada.