[1][4]) German reunification in October 1990 resulted in Air France and Lufthansa adjusting their stakes in Euroberlin so that each airline owned exactly 50% of its share capital.
[7][8] Several years of successive declines and stagnation of scheduled internal German air traffic from and to West Berlin during the 1970s and early 1980s[9][10][11] were followed by renewed expansion in this market from the mid-1980s.
Compared with its two bigger rivals in the Berlin market, it served fewer German domestic routes at lower frequencies and did not promote these as effectively.
The agreement's intention was to enable both BEA and Air France to compete better with Pan Am's more frequent services on these routes by pooling their resources.
The same day, Air France introduced a second daily return flight between Orly and Tegel, which routed via Cologne in both directions to maintain the airline's internal German traffic rights from/to Berlin.
[21][25][26][27] From April 1, 1974, Air France routed both of its daily Orly–Tegel services via Cologne, and from November 1, 1974, it switched them to the French capital's then new Charles de Gaulle Airport.
[16][28] At the start of the 1976 summer timetable, Air France introduced a third daily CDG–Tegel frequency, which routed via Düsseldorf and utilised the Boeing 727-200, a bigger aircraft than the Caravelles used on the company's other services from/to Berlin.
[4]) The perceived lack of genuine competition in a growing market coincided with continuing criticism of the ailing Pan Am's internal German operation.
[1][4][33] The only way for Air France and Lufthansa to compete successfully in this market was by way of establishing a subsidiary with substantially lower operating costs than those of the incumbent airlines.
[35] From then on, Euroberlin also entered the short- to medium-haul charter market from West Berlin to help it maintain a high aircraft utilisation at week-ends when frequencies on its scheduled route network were reduced.
This firmly established it as the third-largest contemporary airline operator at Berlin Tegel, a position previously held by UK independent Dan-Air Services.
[1][41] This, as well as its low cost base, helped make the airline profitable within a relatively short period of time, with an average scheduled load factor of 60%.
This was part of Lufthansa's contemporary corporate strategy to re-establish its presence in Berlin as quickly as possible after a politically enforced absence of 45 years.