In late December 1985, the airline revealed a new livery and name. The planes would now be red, white and blue and the name was changed from CP Air to Canadian Pacific. The new look was implemented in January 1986.
In 1986, Canadian Pacific bought Eastern Provincial Airways and Nordair. In 1987, Canadian Pacific itself was bought by Pacific Western Airlines and the four airlines were merged as Canadian Airlines. Some elements of Canadian Pacific's identity were transferred to Canadian Airlines.