Editing Modern Air Transport (section)

====Diversification into new business areas and overseas expansion====
The agreement with Air France for the temporary lease of one aircraft beginning in April 1967 provided additional work for the new jets.<ref>{{cite journal|title=Modern Air Convair CV-990A in Air France colours on stand at London Heathrow (photo)|journal=Flight International|date=27 April 1967|page=656|url=http://www.flightglobal.com/pdfarchive/view/1967/1967%20-%200672.html|access-date=19 July 2017}}</ref><ref>{{cite web|url=http://www.airlinefan.com/airline-photos/large/1369910/Air-France/Convair/CV-990-Coronado/N5605/|title=Modern Air Convair CV-990-30A-5 N5605 in Air France colours at Paris Le Bourget Airport during May 1967 (photo)|work=www.airlinefan.com|access-date=1 August 2017}}</ref>

Further work to increase the growing jet fleet's utilisation was secured when the [[Federal government of the United States|Federal Government]] awarded Modern Air a contract to carry military personnel between camps in the US. However, this was insufficient to justify continuing expansion of the fleet and workforce. By the time Modern's third [[Convair 990|990]] was delivered, it experienced financial difficulties. This resulted in layoffs and management changes. As Modern Air was liable to pay substantial cancellation fees and would have forfeited the deposits that it had already paid for the outstanding aircraft deliveries if it terminated its purchase agreement with American Airlines unilaterally, Modern opted to begin looking for additional business opportunities to keep the expanding fleet fully employed.<ref name="BeyerM_FlyingHigher_Modern_187">Beyer, Morten S. [https://books.google.com/books?id=hIe6y-9Fwo4C&dq=general+acceptance+corp%2C+gulf+american+corp%2C+modern+air&pg=PA193] ''Flying Higher: Reorganizing Modern Air, 2009, p. 187''</ref>

As a result of a narrow [[Soviet Union|Soviet]] interpretation of the [[Potsdam Agreement]] between the [[United States of America|United States]], the [[United Kingdom]] and the [[Soviet Union]], access to West Berlin by air was restricted to three {{convert|10,000|ft|m|abbr=on}} high and {{convert|20|mi|km|abbr=on}}-wide [[West Berlin Air Corridor|air corridor]]s, for exclusive use by aircraft under the control of individuals and (where applicable) organisations from the United States, the United Kingdom and [[France]], the three Western victorious powers of [[World War II]]. These three air routes existed from February 1946 until [[German reunification]] in October 1990. They linked the [[exclave]] of West Berlin with [[West Germany]] and passed over the territory of [[Communism|communist]] [[German Democratic Republic|East Germany]]. The airspace they encompassed was jointly administered from the [[Berlin Air Safety Centre|Berlin Air Safety Center]] in West Berlin by representatives of the governments of all four victorious powers that had defeated [[Germany]] in World War II.<ref group=nb>including the Soviet Union</ref><ref>Laurenz Demps and Carl-Ludwig Paeschke, ''Flughafen Tempelhof: Die Geschichte einer Legende'', Berlin: Ullstein, 1998, p. 83. {{ISBN|3-550-06973-1}}. {{in lang|de}}</ref><ref>{{cite web|url=http://www.flightglobal.com/PDFArchive/View/1972/1972%20-%202018.html|title=1972 - 2018 - Flight Archive|work=flightglobal.com|access-date=16 October 2015}}</ref><ref name="BeyerM_FlyingHigher_Modern_188_9">Beyer, Morten S. [https://books.google.com/books?id=hIe6y-9Fwo4C&dq=general+acceptance+corp%2C+gulf+american+corp%2C+modern+air&pg=PA193] ''Flying Higher: The Berlin Operation, 2009, pp. 188/9''</ref>

The massive post-war reconstruction effort in West Berlin, the city's rapid economic recovery following the end of the [[Berlin Blockade]] and the beginning of the [[Wirtschaftswunder|German economic miracle]] resulted in rapidly rising living standards and [[disposable and discretionary income|disposable incomes]] of the local population. Together with the lifting of travel restrictions imposed by other countries on [[West Germany|West German]] passport holders in the immediate aftermath of World War II and West Berlin's location inside East Germany this in turn drove the local population's rapidly rising demand for overseas travel and the growing popularity of [[package tour]]s involving air travel. As West Berlin was out of bounds for [[Germany|German]] airlines, local [[tour operator]]s [[air charter|charter]]ed aircraft of the [[United Kingdom|British]] independent<ref group=nb>independent from [[government-owned corporation]]s</ref> airlines and US supplemental carriers that began flying from the city's [[Berlin Tempelhof Airport|Tempelhof]] and [[Berlin Tegel Airport|Tegel]] airports in the early 1960s.<ref name="BeyerM_FlyingHigher_Modern_188_9"/><ref name="BER_Airport_Co_Feb65">''Berlin Airport Company - Summary of 1964 Annual Report, February 1965 Monthly Timetable Booklet for Berlin Tempelhof and Berlin Tegel Airports'', Berlin Airport Company, West Berlin, 1965 {{in lang|de}}</ref><ref name="BER_Airport_Co_Feb68">''Berlin Airport Company - Summary of 1967 Annual Report, February 1968 Monthly Timetable Booklet for Berlin Tempelhof and Berlin Tegel Airports'', Berlin Airport Company, West Berlin, 1968 {{in lang|de}}</ref>

Prior to Modern Air's arrival in [[Berlin]], the biggest among these was US supplemental [[Saturn Airways]]. Saturn opened a base at West Berlin's Tempelhof Airport in 1964. Its Berlin-based fleet comprised [[Douglas DC-6]] and DC-7 piston airliners, which were chartered by '''Flug-Union Berlin''' for its flying programme to several airports serving popular holiday resorts, chiefly in the [[Mediterranean Sea|Mediterranean]]. Flug-Union Berlin was the first tour operator with a West Berlin flying programme and acted at the time as the city's consolidator for the big West German tour companies Neckermann (then part of the eponymous department store chain) and [[TUI Group|Touristik Union International]] (TUI), the travel arm of the [[Deutsche Bundesbahn|Federal German Railway]].<ref group=nb>Flug-Union Berlin became a tour operator in its own right, when it launched its first dedicated package tour flight programme with British independent [[Laker Airways]] from Tegel Airport in August 1968</ref> Local rival tour operator '''Berliner Flugring''', which had begun as a consortium of 70 local travel agents arranging [[inclusive tour]] (IT) flights from West Berlin to holiday resorts in Europe,<ref name="Overseas_trouble">{{cite journal|title=Overseas Aviation (CI) in trouble|journal=Flight International|date=24 August 1961|page=269|url=http://www.flightglobal.com/pdfarchive/view/1961/1961%20-%201167.html?search=Berliner%20Flugring|access-date=19 July 2017}}</ref><ref name="BeyerM_FlyingHigher_Modern_189">Beyer, Morten S. [https://books.google.com/books?id=hIe6y-9Fwo4C&dq=general+acceptance+corp%2C+gulf+american+corp%2C+modern+air&pg=PA193] ''Flying Higher: The Berlin Operation, 2009, p. 189''</ref><ref name="Diversification"/><ref name="sign_up"/> also chartered Saturn's (as well as a number of different British independent airlines') aircraft for its flying programme.<ref name="BeyerM_FlyingHigher_Modern_188_9"/><ref name="Overseas_trouble"/> When some British independent rivals in West Berlin began replacing their piston and [[turboprop]] planes with jets such as the [[BAC One-Eleven]] and [[de Havilland Comet#Comet Mk. IV|de Havilland Comet 4]] from the mid-1960s, Saturn's piston airliners became obsolete. To remain competitive and to defend its market leadership in the West Berlin air charter market, it needed to re-equip with jets as well. Although it had already ordered the [[Douglas DC-8#Super 60 Series|Douglas DC-8 Super 60 series]] and would operate the [[Boeing 707]] as well, these were long-range aircraft unsuited to taking off from and landing on Tempelhof's short runways (as well as short runways at some overseas destination airports) with a viable payload. They were also unsuitable for the short- and medium-haul flights that dominated West Berlin charter flying and had too many seats to fill for most of the routes served by West Berlin charter aircraft. To match the superior performance of British competitors' jets and to exceed their passenger comfort, Saturn had no option but to acquire a dedicated fleet of short-/medium-haul jets, such as the [[Boeing 727]], [[Boeing 737]] or [[Douglas DC-9]] for its West Berlin operation. However, following a change in Saturn's ownership, the new management decided to close the airline's Tempelhof base in 1967.<ref name="BeyerM_FlyingHigher_Modern_188_9"/><ref name="BER_Airport_Co_Feb65"/><ref name="BER_Airport_Co_Feb68"/>

Although Saturn's contemporary British competitors in the West Berlin charter market moved quickly to fill the void left by the US supplemental's departure from Berlin, Saturn's former Tempelhof station manager, John D. MacDonald, was keen to re-establish a local US charter presence. This resulted in John MacDonald contacting rival supplemental Modern Air, who were looking for additional work for their recently acquired CV-990 jets, and using his local contacts with Flug-Union Berlin and Berliner Flugring to assist Modern with securing sufficient work to open a base in Berlin.<ref name="BeyerM_FlyingHigher_Modern_188_9"/>

Ensuing successful negotiations with Berliner Flugring to operate a [[US dollar|$]]3.5 million, West Berlin based programme,<ref group=nb>envisaging the carriage of 90,000 passengers on 670 short- and medium-haul IT charter flights to 16 destinations, mainly in the Mediterranean</ref> as well as a similar $2 million programme with Flug-Union Berlin and a $1.5 million, seven months wet lease of up to two aircraft to [[Canada|Canadian]] [[charter airline|charter carrier]] [[Nordair]],<ref>{{cite web|url=http://www.jetphotos.net/viewphoto.php?id=5977300|title=Modern Air Convair CV-990-30A-5 N5615 in Nordair colours at Philadelphia International Airport during October 1968 (photo)|work=www.jetphotos.net|date=15 May 2007 |access-date=16 October 2015}}</ref> enabled Modern Air to profitably utilise its spare aircraft capacity.<ref name="Diversification"/><ref name="Modern_CV990"/><ref name="sign_up">{{cite journal|title=Modern Air Signs Up|journal=Flight International|date= 28 August 1969|page=311|url=http://www.flightglobal.com/PDFArchive/View/1969/1969%20-%202683.html|access-date=19 July 2017}}</ref><ref name="BeyerM_FlyingHigher_Modern_191">Beyer, Morten S. [https://books.google.com/books?id=hIe6y-9Fwo4C&dq=general+acceptance+corp%2C+gulf+american+corp%2C+modern+air&pg=PA193] ''Flying Higher: The Berlin Operation, 2009, p. 191''</ref><ref>{{cite journal|title=Modern/Nordair Agreement|journal=Flight International|date=25 April 1968|page=606|url=http://www.flightglobal.com/pdfarchive/view/1968/1968%20-%200628.html|access-date=19 July 2017}}</ref><ref>{{cite journal|title=Modern Air Convair CV-990A N5615 in Nordair colours at Miami International (photo)|journal=Flight International|date=11 July 1968|pages=42–43|url=http://www.flightglobal.com/pdfarchive/view/1968/1968%20-%201197.html|access-date=19 July 2017}}</ref><ref name="WorldHistoryBiz_MAT"/>

By the time Modern Air assumed Berliner Flugring's flying programme, the latter had become the city's foremost package tour operator. The two West Berlin charter flight programmes the [[United States|America]]n supplemental operated under contract to Berliner Flugring and Flug-Union Berlin accounted for approximately 500 round trips during its first summer season in West Berlin. The decision to supply whole-plane [[charter airline]] seats to both of the city's leading package tour operators also enabled Modern Air to take advantage of rules permitting regular charter flights from West Berlin all year round.<ref name="cutbacks"/><ref name="Diversification"/><ref name="Berlin_Airport_Company">''Berlin Airport Company - Summary of 1974 Annual Report, February 1975 Monthly Timetable Booklet for Berlin Tempelhof and Berlin Tegel Airports'', Berlin Airport Company, West Berlin, 1975 {{in lang|de}}</ref> This was more liberal than in the US, where restrictive rules governed non-scheduled air services as part of an effort by the CAB to protect the country's scheduled airlines.<ref name="BeyerM_FlyingHigher_Modern_191"/>

To enable Modern Air to operate its new CV-990s into Fort Myers Page Field with a viable payload, GAC agreed to co-finance the lengthening of one of its runways, which until then had been limited to revenue flights with jet aircraft no bigger than the [[Boeing 727#727-100|Boeing 727-100]]. As a result, the airline operated its first CV-990 revenue flight, which was chartered by GAC Properties to carry 134 prospective land buyers from [[Sioux City, Iowa]] into Page Field on 1 February 1968 (before proceeding to [[Kansas City, Missouri]] and [[Lincoln, Nebraska]] to return with another load of prospective buyers to Fort Myers Page Field).<ref name="MAT_Story_64"/>

By 1968, Modern Air operated an all-jet fleet comprising five CV-990s.<ref name="GulfAmericanCorp"/><ref>''Aeroplane - Commercial: Modern Air Transport has taken delivery of a fifth Convair 990A from American Airlines'', Vol. 115, No. 2946, p. 11, Temple Press, London, 3 April 1968</ref> The acquisition of a further two CV-990s from American Airlines at the end of 1970 expanded Modern's 990 fleet to seven aircraft. This allowed it to vie with [[Swissair]] for the title of the world's largest [[Convair 990]] operator.<ref name="MAT_Story_66">''Airways'' (Proctor, J., Archive, ''Modern Air Transport''), Vol. 24, No. 03, Iss. 255, p. 66, Airways International Inc., Miami, May 2017</ref><ref name="GAC"/> The final enlargement of Modern's CV-990 fleet occurred in 1972, when it acquired former [[Brazil]]ian [[flag carrier]] [[Varig|VARIG]]'s final two examples. This brought the airline's 990 fleet to nine, briefly allowing it to assume the title of the world's largest Convair 990 operator.<ref group=nb>the title of the world's largest CV-990 operator was subsequently assumed by [[Spain|Spanish]] [[air charter|charter airline]] [[Spantax]], whose fleet eventually comprised 14 examples</ref><ref name=RocketShips_97>''Airliner Classics (The Convair Rocket Ships – The CV-880 and CV-990: Coronado flies on)'', p. 97, Key Publishing, Stamford, July 2015</ref><ref>''Airways'' (Proctor, J., Archive, ''Modern Air Transport''), Vol. 24, No. 03, Iss. 255, pp. 66/7, Airways International Inc., Miami, May 2017</ref> The expanded all-jet fleet facilitated the introduction of regular tour group charters carrying American tourists from the Miami and New York areas to popular holiday resorts in [[North America|North]] and [[Central America]], as well as the launch in May 1968 of a Canadian-based [[Caribbean]] and [[transatlantic flight|transatlantic]] charter programme,<ref group=nb>involving the lease of an aircraft operated by Modern Air flight deck crews and Nordair [[flight attendant|cabin staff]] in the latter's livery carrying 20,000 passengers from [[Montréal]] to 17 Caribbean and [[Europe]]an destinations</ref> in addition to operating a large German charter programme.<ref name="Diversification"/><ref name="AC_Profile_CV990"/> Eventually, all three US-based Modern Air CV-990s were allocated to the Canadian transatlantic charter programme, which Modern Air operated for Nordair under a wet lease arrangement (until 1970, when the [[Government of Canada]] revoked Nordair's permission to [[subcontractor|subcontract]] transatlantic flights to foreign airlines). At least two of these aircraft wore the full Nordair livery.<ref name="MAT_Story_65"/><ref name="WorldHistoryBiz_MAT"/>

In 1968, Modern Air increased revenues by 20% to over $11.5 million (compared with 1967), while significantly reducing losses (a $1.3 million operating loss and a $2.4 million net loss, respectively).<ref name="WorldHistoryBiz_MAT"/>

Modern Air's expanding jet operations also led to further development in the airline's maintenance capabilities, as a result of the takeover of [[aircraft maintenance]] and conversion specialist, [[American Airmotive]]. This included one of Miami International Airport's biggest [[hangar|aircraft hangar]]s and an aircraft maintenance base. Together with the earlier acquisition of the entire CV-990 spares inventory and engine tooling equipment, it helped the airline reduce its maintenance costs and improve the reliability of its fleet by enabling it to perform most maintenance tasks in-house.<ref name="MAT_Story_65"/>

=====Establishment and growth of West Berlin operation=====
In March 1968, Modern Air stationed two CV-990 jets at West Berlin's [[Berlin-Tegel Airport#Other operators|Tegel Airport]]. These were the biggest and fastest aircraft based at any Berlin airport at that time.<ref name="AC_Profile_CV990"/><ref name="Berlin_Airport_Company"/> Modern's new base employed 120. Apart from the flight deck personnel (who were required to hold US, British or [[France|French]] passports under West Berlin commercial air transport regulations), all were local.<ref name="MAT_Story_65"/> The latter included locally based, all-female cabin crew, who were known as "tiger girls" because of their distinctive yellow-and-black striped uniforms.<ref>Beyer, Morten S. [https://books.google.com/books?id=hIe6y-9Fwo4C&dq=general+acceptance+corp%2C+gulf+american+corp%2C+modern+air&pg=PA193] ''Flying Higher: Topless to Paris, 2009, p. 204''</ref>

While all Modern Air commercial flights from and to Berlin principally used Tegel to take advantage of the airport's longer runways and the fact that it was not in a built-up area making for easier [[final approach (aeronautics)|approach]]es (compared with nearby Tempelhof), the airline conducted its training for Berlin-based flight deck crews at Tempelhof. The latter was also the designated diversion airport in bad weather in the Tegel area.<ref name="MAT_Story_65"/><ref name="BeyerM_FlyingHigher_Modern_189"/> The establishment of Modern Air's Berlin base also enabled it to provide [[aircraft ground handling]], maintenance and catering services to third parties, including Air France and [[Pan American World Airways]] (Pan Am).<ref name="MAT_Story_65"/>

As Modern Air's West Berlin charter permit did not authorise the carriage of cargo, the airline's Berlin management decided to utilise the only lightly filled cargo holds of its Tegel-based CV-990s to carry inbound catering and essential spares and tooling, including a spare tyre. The reason for carrying catering destined for passengers booked on return flights all the way from Berlin rather than appointing local suppliers at destination airports was that it worked out cheaper and was deemed more reliable and safer (compared with relying on overseas suppliers with varying quality and hygiene standards and who often plied their trade only seasonally) while the reason for carrying essential spares and tooling on outbound aircraft was to ensure emergency serviceability at destination airports lacking CV-990 spares inventories, given the type's narrow operator base (compared with the then ubiquitous [[Boeing]] and [[Douglas Aircraft Company|Douglas]] types and other popular contemporary aircraft types).<ref>Beyer, Morten S. [https://books.google.com/books?id=hIe6y-9Fwo4C&dq=general+acceptance+corp%2C+gulf+american+corp%2C+modern+air&pg=PA193] ''Flying Higher: The Berlin Operation / General Acceptance Corp. Buys Modern Air / ..., 2009, pp. 190, 196, 210''</ref>

Modern's two Berlin-based [[Convair]] jets flew to 19 destinations from Tegel Airport during their first summer season, which lasted from May to September. The successful conclusion of Modern's first summer season in Berlin saw one aircraft speculatively retained for the winter season to develop a new charter programme to the [[Canary Islands]], a first in the West Berlin market.<ref name="MAT_Story_65"/><ref name="GAC"/>

Modern Air appointed former Saturn Airways Berlin station manager John D. MacDonald [[general manager]] to oversee its European operations from its Tegel base.<ref name="GM_Europe">{{cite journal|title=Modern in Europe|journal=Flight International|date=17 July 1969|page=85|url=http://www.flightglobal.com/pdfarchive/view/1969/1969%20-%202441.html|access-date=19 July 2017}}</ref>

Modern Air carried over 135,000 passengers (out of a company-wide total of just under 300,000) during its first year of operations from Tegel.<ref name="sign_up"/><ref name="WorldHistoryBiz_MAT"/>

The successful conclusion of Modern Air's first and promising start to its second year in West Berlin resulted in the airline signing a five-year contract with Berliner Flugring worth $20 million ([[pound sterling|£]]8.3 million). The contract ran from the beginning of the 1969/70 winter season until the end of the 1974 summer season.<ref name="sign_up"/>

Berliner Flugring began referring to [[business partner]] Modern Air's CV-990s as [[Convair 990|Coronado]]s<ref group=nb>named after the resort [[Coronado, California]]</ref> in its marketing. This was the nickname pioneered by [[Switzerland|Swiss]] flag carrier Swissair, the type's first operator in Europe.<ref name="Berlin_Airport_Company_May_69">''Berlin Airport Company, May 1969 Monthly Timetable Booklet for Berlin Tempelhof and Berlin Tegel Airports'', Berlin Airport Company, West Berlin, 1969 {{in lang|de}}</ref>

Modern Air's five-year contract with Berliner Flugring and an expanded US-based flying programme under contract to parent GAC that saw prospective homeowners flown into [[Tucson, Arizona]] from May 1969 to view the new [[Rio Rico, Arizona|Rio Rico]] property development near [[Nogales, Arizona|Nogales]] significantly improved aircraft utilisation.<ref name="sign_up"/><ref name="MAT_Story_65"/>

Also in 1969, Modern Air's Tegel-based European operations manager John MacDonald assumed additional responsibilities as the airline's [[vice president]].<ref name="GM_Europe"/> In addition, the airline sold a CV-990 to Spantax (which was replaced with another example acquired from [[Alaska Airlines]] in December) and began installing a then new type of light-weight, [[United Kingdom|UK]]-manufactured "slimline" seat in its 990s. This enabled the addition of two extra rows, without compromising legroom. The resulting increase in capacity to 149 passengers per plane resulted in an up to 20% improvement in [[Available seat miles#Cost per ASM /ASK (CASM / CASK)|seat-mile cost]] (compared with [[American Airlines|American]]'s original 125-seat, low density configuration) and helped improve the airline's financial performance.<ref name="MAT_Story_65"/><ref name="WorldHistoryBiz_MAT"/><ref name="BeyerM_FlyingHigher_Modern_187"/> Modern Air also reduced the CV-990's speed limit from [[Mach number|Mach]] .85 to Mach .78. This reduced fuel burn by 30% per hour and had the beneficial side effect of increasing the aircraft's range by 20% (by reducing [[Drag (physics)#Power curve in aviation|drag]]), permitting non-stop [[transatlantic flight]]s from the [[East Coast of the United States|eastern seaboard]] of the US to [[Central Europe]], such as [[Philadelphia]] to [[Vienna]] for example, with a full payload.<ref>''Airways'' (Proctor, J., Archive, ''Modern Air Transport''), Vol. 24, No. 03, Iss. 255, pp. 64, 67, Airways International Inc., Miami, May 2017</ref><ref name="BeyerM_FlyingHigher_Modern_187"/>

While Modern's 990s were more expensive to operate than the dedicated short-/medium-haul jets of their British rivals in West Berlin due to higher fuel consumption and had more seats to fill, the airline compensated for these disadvantages with its single type fleet. This resulted in cost savings compared with mixed type fleet rivals. In addition, in the pre-[[1973 oil crisis]] era of low fuel prices, the relatively low acquisition costs of these well-maintained, older generation second-hand jets partially compensated for the superior economics of comparable, contemporary new-built, state-of-the-art jet aircraft such as the Boeing 727. Moreover, the 990's ability to carry a similar number of passengers as the 727 over greater distances made it more versatile and resulted in greater operational flexibility.<ref name="BeyerM_FlyingHigher_Modern_187"/>

Berliner Flugring's ability to avail itself of an aircraft capable of non-stop long-haul missions and offer its package tour customers greater legroom on board Modern Air's aircraft than competitors that contracted their flying programmes from West Berlin to various British charter airlines were important differentiators for the American supplemental's main business partner. Emphasising in its marketing the superior comfort and speed of Modern's 990s, as well as the fact that it was West Berlin's only tour operator exclusively using four-engined aircraft to fly its customers on holiday, enabled Berliner Flugring to gain an important competitive advantage over its rivals.<ref name="AC_Profile_CV990"/><ref name="Berlin_Airport_Company_May_69"/><ref name="Berlin_Airport_Company"/><ref>''Airways'' (Weidmann, U., ''The Charismatic Coronado''), Vol. 17, No. 11, pp. 38/9, Airways International Inc., Sandpoint, January 2011</ref>

In addition to the city's established tour operators such as Berliner Flugring, which provided Modern Air with the bulk of its business out of West Berlin, Modern Air also attracted business from smaller local startups and other operators catering to a more cost-conscious clientele by offering lower rates for midweek and night flying. In addition to smaller local tour companies, the local organisers of [[Visiting friends and relatives|VFR]] flights back home for West Berlin's large [[Turkish people|Turkish]] migrant population contracted their business to Modern Air to take advantage of lower rates at less popular times. This in turn enabled the airline to generate more business outside the Friday to Sunday peak, with the aim of smoothing peaks and troughs in activity.<ref name="Berlin_Airport_Company_May_69"/>

The total number of passengers carried company-wide in 1969 rose to just under 330,000 while revenues totalled over $14 million and losses stood at more than $980,000 (operating) and over $1.8 million (net), respectively.<ref name="WorldHistoryBiz_MAT"/>

Following the [[write-off]] of the ex-[[Alaska Airlines|Alaska]] CV-990, as a result of the aircraft's involvement in a landing accident in [[Acapulco]] in early-August 1970, another example was acquired from American Airlines as a replacement later that year. The total number of passengers carried that year increased marginally to just under 340,000 while there was a slight decrease in total revenues to below $14 million, mainly as a result of the termination of the Nordair wet lease.<ref name="WorldHistoryBiz_MAT"/>

As the company's flying programme from Berlin gradually expanded, additional aircraft joined the Berlin-based fleet. By 1971, the 25th anniversary of the airline's formation, five CV-990s were stationed at Tegel Airport year-round (along with most of the airline's employees).<ref name="GAC"/><ref name="Berlin_Airport_Company"/> This equalled the total number of aircraft Modern Air's three main contemporary competitors in the West Berlin air charter market, the UK independent airlines Laker Airways, [[Dan-Air]] and [[Channel Airways]], stationed at Tegel Airport, making the US supplemental the city's leading charter airline at the time.<ref>''Berlin Airport Company, May 1971 Monthly Timetable Booklet for Berlin Tempelhof and Berlin Tegel Airports'', Berlin Airport Company, West Berlin, 1971 {{in lang|de}}</ref> The decision to base most of its aircraft away from the US was taken in response to the disappointing financial performance of US-based operations. This contrasted with good financial results achieved by the growing operation in Berlin, which had effectively subsidised the shrinking US operation for a number of years. The additional Berlin-based aircraft and personnel also enabled Modern Air to supplement its regular charter programme from Berlin with one-off luxury charters to far-flung, exotic destinations, such as [[Bangkok]], [[Colombo]], [[Hong Kong]], [[Johannesburg]], [[Karachi]] and [[Mauritius]]. To maximise the CV-990's range, as well as to provide an enhanced level of passenger comfort, these flights had their usual Modern Air charter airline seats replaced with the original American Airlines first class seats and carried a bigger crew complement.<ref name="Relaunch_73">''Berlin Airport Company, August 1973 Monthly Timetable Booklet for Berlin Tempelhof and Berlin Tegel Airports'', Berlin Airport Company, West Berlin, 1973 {{in lang|de}}</ref><ref name="MAT_Story_65_6"/>

Another change in management at Modern Air's [[Holding company|parent company]] resulted in the adoption of a new [[strategic management|strategy]] for the airline. This entailed focusing all commercial activities on West Berlin from the beginning of the 1972 summer season to eliminate persistent losses incurred by Modern's US operations, which had consisted of contract flights taking prospective buyers from the US Northeast and Midwest to GAC Properties' real estate developments in Florida and Arizona, charter flights operating under contract to US-based tour operators ASTI and Berry to Mexico, the Caribbean and Central America from New York and Kansas City respectively, as well as extensive military charters carrying reservists within the US.<ref name="MAT_Story_67">''Airways'' (Proctor, J., Archive, ''Modern Air Transport''), Vol. 24, No. 03, Iss. 255, p. 67, Airways International Inc., Miami, May 2017</ref><ref name="GAC"/><ref name="AC_Profile_CV990"/>

Under the stewardship of Modern Air's newly appointed president,<ref group=nb>replacing Mort Beyer, who had been appointed Modern Air president only the year before</ref><ref name="appointment"/> Thomas Ferguson, the airline's entire fleet was stationed at Tegel Airport from May 1972. This move resulted in 250 job losses in the Miami area and the concentration of most of Modern Air's remaining 297 employees in West Berlin. The increase in Modern's Berlin-based fleet resulted in a huge influx of capacity into the West Berlin charter market, where it faced stiff competition from UK rivals Laker Airways and Dan-Air. At the time, Laker's and Dan-Air's Tegel-based fleets mainly comprised BAC One-Eleven [[twinjet]]s. These aircraft were better suited to short- and medium-haul Mediterranean flying that accounted for most package tour flights from West Berlin and had fewer seats in a tighter seating configuration than the US supplemental's four-engined Convair jets. This made the UK independents' aircraft more economical for the bulk of West Berlin charter flying and enabled them to undercut its American rival. In addition, the much closer proximity of the UK independent airlines' main operating bases at [[London Gatwick Airport]] and [[Luton Airport]] to West Berlin's Tegel Airport (compared with Modern Air's distant Miami base) enabled Modern's West Berlin rivals to dispense with keeping expensive and unproductive spare aircraft and associated personnel in Berlin as replacements could be flown in at short notice. This, as well as their diverse fleets comprising a number of different short-, medium- and long-haul [[narrow-body aircraft|narrow-body]] and [[wide-body aircraft]], also enabled Modern's rivals to respond more flexibly and cost-effectively to seasonal peaks and troughs in demand.<ref>''Berlin Airport Company, June 1972 Monthly Timetable Booklet for Berlin Tempelhof and Berlin Tegel Airports'', Berlin Airport Company, West Berlin, 1972 {{in lang|de}}</ref><ref name="WorldHistoryBiz_MAT"/>

Modern Air's management sought to counteract the advantages British competitors enjoyed in the West Berlin charter market by partnering long-standing business partner Berliner Flugring in launching the city's first regular, all year round long-haul charter flight programme. It was thought that, in addition to picking up some of the lucrative contracts for an extensive short-/medium-haul West Berlin charter flight programme from Tegel Airport a consortium of three West German tour operators had awarded to defunct British rival Channel Airways in September 1970 (beginning in March 1971),<ref>''Flying to the sun – A history of Britain's holiday airlines: 6. Into the jet age – Channel Airways'', Woodley, C., The History Press, Stroud, 2016, p. 91</ref> this would provide sufficient utilisation for the airline's additional Berlin-based aircraft and enable it to obtain better rates than in the city's heavily contested short-/medium-haul charter market. This in turn would allow Berliner Flugring to further differentiate itself from rivals and enable it to charge its customers a premium for a new, unique and superior product. However, this was dependent on regulatory approval by the [[military attaché|Allied Air Attachés]] in [[Bonn]]<ref group=nb>in the [[Cold War]] era the American, British and French embassies in [[West Germany]]'s capital Bonn each had a [[military attaché]] attached, who was dealing with commercial aviation matters in West Berlin; the three Allied Air Attachés jointly exercised sole responsibility for commercial aviation in West Berlin on behalf of the governments of the [[Federal government of the United States|United States]], the [[Government of the United Kingdom|United Kingdom]] and [[Government of France|France]] during this period</ref> and the aviation authorities of destination countries. However, as a result of pressure exerted by Pan Am, [[British European Airways]] (BEA) and Air France on the Allied Air Attachés, as well as objections lodged by the destination countries' national airlines with their aviation authorities, the relevant approvals were withheld. The established airlines viewed Modern Air's plans as a backdoor route to the scheduled air market. They feared that granting permission to a non-member of the [[International Air Transport Association]] (IATA) outside the relevant intergovernmental, bilateral [[air transport agreement]]s would set a [[precedent]] for other non-IATA members to bypass regulatory restrictions in contemporary bilateral air transport agreements that limited access to scheduled air services and encourage circumvention of IATA fare rules by non-members.<ref>''Berlin Airport Company, November 1972 Monthly Timetable Booklet for Berlin Tempelhof and Berlin Tegel Airports'', Berlin Airport Company, West Berlin, 1972 {{in lang|de}}</ref><ref name="MAT_Story_67"/>

A second attempt by Modern Air and Berliner Flugring to gain approval for their planned year-round long-haul charter programme sought to address the established airlines' concerns by teaming up with Swiss flag carrier Swissair, whereby Modern Air would fly partner Berliner Flugring's long-haul package tour customers between Berlin Tegel and Swissair's [[Zürich Airport]] base at a minimum frequency of two round trips per week to enable convenient transfers to and from Swissair's global network. However, this revised plan still met with objections from Pan Am, BEA and Air France, who viewed Swissair's support for it as an attempt to divert long-haul passengers on to the Swiss airline's network by using Modern Air's proposed Tegel–Zürich flights as a feeder. The Allied Air Attachés upheld the objections of West Berlin's three main scheduled airlines by ruling that combining charter and scheduled flights in a package was impermissible. As a result of these rulings, despite increasing the total number of passengers carried in 1972 to just under 400,000 and growing total revenues to $15.6 million, Modern Air was unable to expand profitably in West Berlin and recorded a loss for the year (a $2.42 million operating loss and a $4.14 million net loss, respectively).<ref name="BER_Airport_Co_Feb73">''Berlin Airport Company - Summary of 1972 Annual Report, February 1973 Monthly Timetable Booklet for Berlin Tempelhof and Berlin Tegel Airports'', Berlin Airport Company, West Berlin, 1973 {{in lang|de}}</ref><ref name="MAT_Story_67"/><ref name="WorldHistoryBiz_MAT"/>

In addition, to Modern Air's abortive attempts to launch a regular, year-round long-haul charter programme from West Berlin in partnership with Berliner Flugring, the airline and its long-standing business partner also attempted for a number of years to gain all necessary approvals for West Berlin's first-ever charter flight to [[Moscow]] as part of a one-off, all-inclusive city break package in the Soviet capital. Modern Air's management hoped to be able to build on its earlier success of 1968, when interventions at the highest level of the [[Federal government of the United States|US government]] with its Soviet counterpart had resulted in Modern Air becoming the first US non-scheduled airline to be given permission at short notice to fly a US charter party to Moscow for a brief stopover on its first [[Polar route|transpolar]] flight ("Polar Byrd I"). In addition to being a test of the limits of [[Eastern Bloc|East]]-[[Western Bloc|West]] cooperation in the then prevailing political climate of ''[[Détente#Cold War|Détente]]'' (which aimed to create a more stable and predictable political environment by easing Cold War tensions), it was thought that this would be a major publicity coup for the airline and help it to raise its public profile further. Despite appearing cooperative initially, the Soviet authorities imposed increasingly onerous conditions on the airline and tour operator for the programme to go ahead. These ultimately proved unworkable and forced its abandonment.<ref name="BER_Airport_Co_Feb73"/><ref>Beyer, Morten S. [https://books.google.com/books?id=hIe6y-9Fwo4C&dq=general+acceptance+corp%2C+gulf+american+corp%2C+modern+air&pg=PA193] ''Flying Higher: Round the World Polar I, 2009, pp. 200/1''</ref> Similar to the case of the Bulgarian communist authorities' sudden and unexplained withdrawal of landing and overflight rights for flights originating/terminating in West Berlin (despite the much-needed hard currency Bulgaria earned from air navigation fees and airport user charges paid by the American and British airlines that operated these flights), some Western political observers at the time suspected behind-the-scenes [[German Democratic Republic|East German]] lobbying of its [[Warsaw Pact]] ally and chief political backer respectively to have caused this to ensure East Germany's political and economic interests were not ignored in its Cold war allies' interactions with the West, especially where these concerned relations with West Berlin.<ref name="SXF_detour">{{cite web|url=http://www.spiegel.de/spiegel/print/d-43176785.html|title=Detour via Schönefeld (translated article title)|work=Der Spiegel|date=12 July 1971|volume=29, 1971|page=41|access-date=19 July 2017|language=de}}</ref>

=====Entering West Berlin executive charter and scheduled markets=====
At its Berlin base, Modern Air also experimented with executive charter and scheduled services.

Modern Air first applied for scheduled service rights between West Berlin and West Germany, as well as major European cities that could not be accessed by scheduled flights from West Berlin at the time, in 1969. Unlike West Berlin's established scheduled airlines, Modern Air promised to operate its planned scheduled services without subsidies on the internal German routes for which it was applying and, where it was planning to compete with existing operators, to undercut existing scheduled air fares by up to 50%. Its application initially focused on the Berlin–[[Saarbrücken]] route, which was not served by any of the city's established scheduled operators. Although the business community in both locations supported Modern's application, West Berlin's established airlines opposed it. Pan Am's opposition to Modern Air's plans was particularly fierce. As a consequence of a general slowdown in global air traffic growth and committing to a large number of [[Boeing 747]]s that proved difficult to fill profitably, it had fallen into loss. The only profitable part of Pan Am's worldwide scheduled operation was its [[Pan American World Airways#Internal German Services (IGS) and other operations|Internal German Services]] (IGS) division.<ref name="BER_Airport_Co_Feb70">''Berlin Airport Company - Summary of 1969 Annual Report, February 1970 Monthly Timetable Booklet for Berlin Tempelhof and Berlin Tegel Airports'', Berlin Airport Company, West Berlin, 1970 {{in lang|de}}</ref><ref name="BeyerM_FlyingHigher_Modern_206_7">Beyer, Morten S. [https://books.google.com/books?id=hIe6y-9Fwo4C&dq=general+acceptance+corp%2C+gulf+american+corp%2C+modern+air&pg=PA193] ''Flying Higher: Schedule Service from Berlin, 2009, pp. 206/7''</ref>

Although Modern Air's application for scheduled rights between Berlin and Saarbrücken was outside the CAB's regulatory scope as the route did not touch the US or its dependent territories, Pan Am began a major lobbying campaign in Washington, D.C. that aimed to thwart any future attempts by Modern Air and other US supplementals to apply to the CAB for permanent scheduled service authority.<ref name="BeyerM_FlyingHigher_Modern_207"/><ref name="BER_Airport_Co_Feb70"/>

Pan Am's opposition to Modern Air's Tegel–Saarbrücken scheduled service application focused on the US supplemental's alleged lack of scheduled service experience, limited operational experience in the [[West Berlin Air Corridor|West Berlin air corridor]]s and insufficient spare capacity (in terms of both aircraft and personnel) to cope with unforeseen disruptions. Pan Am claimed that this could result in an unreliable service and potentially endanger passengers' safety. It also warned that having to compete with Modern Air in addition to government-owned and -subsidised BEA and Air France in West Berlin's crowded scheduled air market could threaten the IGS routes' viability and force it to shut down its operations in Berlin.<ref name="BeyerM_FlyingHigher_Modern_207"/><ref name="BER_Airport_Co_Feb70"/>

A single 12-seater [[HFB 320 Hansa Jet]] was acquired in 1970 as an [[air taxi]] to serve destinations not accessible by scheduled flights from West Berlin at the time.<ref>{{cite journal|title=Hansa Jet for Berlin flights|journal=Flight International|date=29 January 1970|page=149|url=http://www.flightglobal.com/pdfarchive/view/1970/1970%20-%200183.html|access-date=19 July 2017}}</ref><ref>[http://avia-dejavu.net/photo%20N5602.htm N5602 Hamburger Flugzeugbau HFB-320 Hansa c/n 1045 – Modern Air Transport – Groningen Airport Eelde – 25/03/1970 (photo and brief history)]</ref><ref>{{cite journal|title=Light Commercial & Business|journal=Flight International|date=28 May 1970|page=883|url=http://www.flightglobal.com/pdfarchive/view/1970/1970%20-%200963.html|access-date=19 July 2017}}</ref><ref>{{cite journal|title=Berlin Air Taxi Starts|journal=Flight International|date=4 June 1970|page=916|url=http://www.flightglobal.com/PDFArchive/View/1970/1970%20-%200998.html|access-date=19 July 2017}}</ref><ref name="Summer_Start_71">''Berlin Airport Company, June 1971 Monthly Timetable Booklet for Berlin Tempelhof and Berlin Tegel Airports'', Berlin Airport Company, West Berlin, 1971 {{in lang|de}}</ref><ref name="BeyerM_FlyingHigher_Modern_207">Beyer, Morten S. [https://books.google.com/books?id=hIe6y-9Fwo4C&dq=general+acceptance+corp%2C+gulf+american+corp%2C+modern+air&pg=PA193] ''Flying Higher: Schedule Service from Berlin, 2009, p. 207''</ref> The arrival of Modern Air's Hansa Jet at its Tegel base marked the first appearance of a German-built aircraft at the airport since the end of World War II.<ref name="MAT_Story_66"/>

Having overcome Pan Am's opposition, Modern Air eventually launched thrice-daily Tegel–Saarbrücken flights with its 12-seater Hansa Jet in May 1971, marking the airline's scheduled debut.<ref name="Summer_Start_71"/><ref>{{cite web|url=http://homepage.ntlworld.com/m.zoeller/DFFLTS/Showcase%201/Aeroamerica%20Story%20V1.pdf|author=Zoeller, M.|title=aeroamerica|work=ntlworld.com/m.zoeller|date=2007|page=12|access-date=19 July 2017|url-status=dead|archive-url=https://web.archive.org/web/20110628184546/http://homepage.ntlworld.com/m.zoeller/DFFLTS/Showcase%201/Aeroamerica%20Story%20V1.pdf|archive-date=28 June 2011}}</ref><ref name="SCN_KVtoPA">{{cite journal|title=Pan American ...|journal=Flight International|date=9 March 1972|page=347|url=http://www.flightglobal.com/pdfarchive/view/1972/1972%20-%200529.html|access-date=19 July 2017}}</ref><ref name="Modern_ReLaunch">{{cite journal|title=Modern Air to Saarbrucken|journal=Flight International|date=9 August 1973|page=229|url=http://www.flightglobal.com/pdfarchive/view/1973/1973%20-%202096.html|access-date=19 July 2017}}</ref><ref name="BeyerM_FlyingHigher_Modern_207"/>

As a result of the Hansa Jet's poor economics in scheduled airline service and a steady increase in passenger loads, Modern Air applied to the Allied Air Attachés for permission to operate two daily rotations with larger CV-990s.<ref name="SCN_KVtoPA"/><ref name="Modern_ReLaunch"/><ref name="Reject_72">''Berlin Airport Company, January 1972 Monthly Timetable Booklet for Berlin Tempelhof and Berlin Tegel Airports'', Berlin Airport Company, West Berlin, 1972 {{in lang|de}}</ref> However, the Allied Air Attachés refused this under pressure from both Pan Am and BEA, West Berlin's leading contemporary scheduled airlines. Having had its application to introduce larger equipment on this route turned down, Modern Air withdrew all Tegel–Saarbrücken flights in November 1971.<ref name="SCN_KVtoPA"/><ref name="Reject_72"/><ref>{{cite journal|title=Open Skies|journal=Flight International|date=13 January 1972|page=58|url=http://www.flightglobal.com/pdfarchive/view/1972/1972%20-%200090.html|access-date=19 July 2017}}</ref><ref>{{cite journal|title=Open Skies ...|journal=Flight International|date=13 January 1972|page=59|url=http://www.flightglobal.com/pdfarchive/view/1972/1972%20-%200091.html|access-date=19 July 2017}}</ref> Pan Am's takeover of Modern Air's Saarbrücken route in February 1972,<ref name="SCNTHF_PA_Inaugural">{{cite web|url=http://www.flughafen-saarbruecken.de/uploads/tx_wtgallery/popup/8c8a72771ced86f95b338d7f0c11f6ef.jpg|title=First flight of Pan Am from Saarbrücken to Berlin in February 1972 (photo)|work=Saarbrücken Airport website (> Airport > History – 80 years of Saarbrücken Airport > Picture gallery > 3/17 > )|access-date=16 October 2015|archive-url=https://web.archive.org/web/20120313172717/http://www.flughafen-saarbruecken.de/uploads/tx_wtgallery/popup/8c8a72771ced86f95b338d7f0c11f6ef.jpg|archive-date=13 March 2012|url-status=dead}}</ref> which entailed serving it from the former's base at the rival [[Berlin Tempelhof Airport#Postwar commercial use|Tempelhof Airport]] with 128-seat Boeing 727-100s,<ref name="SCNTHF_PA_Inaugural"/><ref>''Aeroplane - Pan Am and the IGS'', Vol. 116, No. 2972, pp. 4, 8, Temple Press, London, 2 October 1968</ref> was followed by the airline's unexpected suspension of Tempelhof–Saarbrücken services after less than a year's operation, citing insufficient demand.<ref name="Modern_ReLaunch"/><ref name="Reject_72"/><ref>''Berlin Airport Company, January 1973 Monthly Timetable Booklet for Berlin Tempelhof and Berlin Tegel Airports'', Berlin Airport Company, West Berlin, 1973 {{in lang|de}}</ref><ref name="Reapply_73">''Berlin Airport Company, March 1973 Monthly Timetable Booklet for Berlin Tempelhof and Berlin Tegel Airports'', Berlin Airport Company, West Berlin, 1973 {{in lang|de}}</ref> This turn of events resulted in Modern Air applying for permission to re-enter the Berlin–Saarbrücken scheduled market with two daily return flights using CV-990s.<ref name="Modern_ReLaunch"/><ref name="Reapply_73"/> Permission for Modern Air to resume its Tegel–Saarbrücken route was granted in time for a summer 1973 re-launch.<ref name="Modern_ReLaunch"/><ref name="Relaunch_73"/><ref>{{cite web|url=http://www.flughafen-saarbruecken.de/uploads/tx_wtgallery/popup/024a316417b826a725c674fc39550ca4.jpg|title=Inaugural CV-990 flight of Modern Air to Berlin in 1973 (photo)|work=Saarbrücken Airport website (> Airport > History – 80 years of Saarbrücken Airport > Picture gallery > 3/17 > )|access-date=16 October 2015|archive-url=https://web.archive.org/web/20120313172732/http://www.flughafen-saarbruecken.de/uploads/tx_wtgallery/popup/024a316417b826a725c674fc39550ca4.jpg|archive-date=13 March 2012|url-status=dead}}</ref> As a result, the CV-990 became the largest contemporary aircraft type to operate a scheduled service into Saarbrücken's small airport.<ref name="Relaunch_73"/>

Several [[airfare|fare]] increases and the [[1973-75 recession|recession]] following in the wake of the 1973 oil crisis resulted in much reduced demand for [[air travel]] in the Berlin–Saarbrücken market. This in turn necessitated a major reduction in frequency to just two round trips per week.<ref>''Berlin Airport Company, May 1974 Monthly Timetable Booklet for Berlin Tempelhof and Berlin Tegel Airports'', Berlin Airport Company, West Berlin, 1974 {{in lang|de}}</ref><ref>''Berlin Airport Company, August 1974 Monthly Timetable Booklet for Berlin Tempelhof and Berlin Tegel Airports'', Berlin Airport Company, West Berlin, 1974 {{in lang|de}}</ref>

These events, as well as the fact that the CV-990 was far too big and consumed too much fuel to serve a regional scheduled route economically, ultimately put paid to the firm's scheduled ambitions.<ref name="Berlin_Airport_Company"/>