As the hard years of the Great Depression set in, many air service companies in Alberta were shutting down or being absorbed by larger companies. This was the case when Western Canadian Airways bought out Commercial and changed its name to Canadian Airways.

Canadian Airways was active in many of the northern destinations, including the Grande Prairie and Peace River region as demand continued to grow late in the 1930s. However, by 1940, the Depression and Second World War made operations extremely difficult, and by the end of 1941, Canadian Airways suffered the same fate as its former competitors. It was purchased by Canadian Pacific Air Lines Ltd.