Canada’s Pacific Western Airlines bought CP Air.

The profitable regional carrier paid $270 million for Canada’s second-largest airline, Canadian Pacific Air Lines. Pacific Western is Canada’s third-largest airline, providing scheduled service to more than 35 communities, primarily in western Canada. CP Air is a subsidiary of Canadian Pacific Ltd., a diversified transportation company that made its fortune in railroading and has become Canada’s second-largest company. Canadian Pacific Air’s hotel operations, with properties in Canada, West Germany and Israel, are not included in the sale of the airline. Pacific Western said it plans to operate the two airlines separately.