Catalina Channel Airlines was founded by former Amphibian Air Transport and Avalon Air Transport pilot Bob Hanley. Bob Hanley was regarded by those who knew him as a masterful water pilot as well as a true gentleman. Promoting "The Executive Service," passengers were shuttled from the airport at Pebbly Beach directly to their door in Avalon courtesy of the airline. Catalina Channel Airlines was the first airline to develop and use the amphibian airport and ramp at Pebbly Beach.
Owned by MGRS, Fred Rosen and Charlie Steelwell, who were also operating the SS Catalina steamship. The General Manager for the airline was Dick Probert. MGRS took over the Catalina Channel Airlines operation and the Pebbly Beach ramp. A new seaplane ramp was opened in 1969 at the newly built Cabrillo Mole Steamship dock, but was abandoned due to heavy ocean swells and a large, submerged rock at the base of the new ramp which made operations difficult and dangerous. Catalina Seaplane's operations returned to the original seaplane ramp at Pebbly Beach.