Braathens

Braathens ASA was a Norwegian airline whose history began in 1946 under the name Braathens South American & Far East Airtransport A/S. It traded for most of its early history as Braathens SAFE, an acronym derived from its original name, before adopting the shorter Braathens identity in 1997. The airline was established by shipowner Ludvig G. Braathen through the Braganza holding structure. Its initial purpose was to transport crews, supplies and passengers connected with Norwegian shipping interests, particularly between Norway and destinations in the Far East and South America. The carrier began operations with Douglas DC-4 aircraft and initially developed a long-haul network linking Oslo with points in Europe, the Middle East, South Asia and East Asia. It also undertook charter and evacuation flights. The creation and expansion of the Scandinavian Airlines System, together with Norway's concession system for scheduled aviation, progressively restricted Braathens SAFE's access to international scheduled routes. From the mid-1950s the airline therefore concentrated primarily on domestic Norwegian services, while retaining international charter flying. This domestic focus became the defining feature of the brand. Braathens served a geographically demanding market. Its network connected Oslo with western and northern Norwegian cities, including Bergen, Stavanger, Trondheim, Ålesund, Molde, Kristiansund, Bodø and Tromsø, and it also served a number of smaller regional airports. Route awards and airport openings repeatedly changed the competitive balance between Braathens SAFE and SAS. The airline used de Havilland Herons and Fokker F-27 Friendships during its regional development, then moved into jet operations with the Fokker F-28 Fellowship and Boeing 737-200. By the mid-1980s it had standardized its main fleet around Boeing 737 aircraft, improving operational commonality and reducing costs. Braathens also participated in leisure and charter aviation. Through relationships with tour operators such as Saga Tours, it operated flights to Mediterranean destinations and other holiday markets. A short-lived experiment with Boeing 767 aircraft attempted to combine scheduled and charter economics under a premium-oriented concept, but the aircraft's unusually low-density configuration proved commercially unsuccessful and they were sold in 1986. The company subsequently focused more strongly on Boeing 737 Classic aircraft for domestic and European flying. Norwegian aviation deregulation in 1994 transformed the airline's environment. Braathens had previously operated within a concession framework that could support routes through regulated market arrangements. After deregulation, it expanded frequencies and competed more directly with SAS, while also facing new entrants such as Color Air. Braathens raised capital through a public offering and listed on the Oslo Stock Exchange, but the cost of fleet investment and the ensuing fare competition weakened its finances. Its purchase of Swedish carriers Transwede and Malmö Aviation also increased strategic complexity and exposure. The opening of Oslo Airport, Gardermoen, in 1998 intensified competition. Braathens, SAS and Color Air engaged in a severe price war, and the resulting losses contributed to Color Air's collapse but also placed substantial pressure on Braathens. Braganza sold control to the SAS Group in 2001. Braathens continued as a distinct airline for a period, but on 1 May 2004 it merged with SAS Norway and became SAS Braathens. The Braathens operating brand was consequently retired as an independent airline identity. Across nearly six decades it had operated 118 aircraft of 15 types and served 53 airports and 50 cities at different points in its history.

Braathens was founded on 26 March 1946 by Ludvig G. Braathen through his shipping interests and the Braganza holding company. The original corporate name, Braathens South American & Far East Airtransport A/S, reflected its intended long-distance role. The airline acquired surplus Douglas C-54 aircraft in the United States, trained crews there and inaugurated its first operational flight from Oslo to Cairo in January 1947. Its first Far East service departed Oslo in February 1947 and reached Hong Kong through a chain of European, Middle Eastern and Asian stops. In its first year the airline also conducted charter, evacuation and transatlantic operations. Norwegian state aviation policy and the development of SAS restricted Braathens SAFE's ability to maintain an independent scheduled international network. A concession obtained in the late 1940s required the airline to establish a technical base at Stavanger Airport, Sola, and the company moved its principal base from Gardermoen to Oslo Airport, Fornebu. After the SAS arrangement became a full merger in 1951, Braathens lost its Far East scheduled rights. It cooperated with Icelandic carrier Loftleidir on North American services, including aircraft and personnel arrangements, but increasingly turned toward Norway's domestic market. Domestic scheduled flying expanded through the 1950s. De Havilland Herons were used on routes from Oslo to Stavanger and Trondheim, while additional stops and destinations were introduced as Norway developed its airport system. The Fokker F-27 Friendship entered service in 1958, providing pressurized turboprop capacity and replacing older piston aircraft on principal routes. Braathens gained important route concessions after the failure of West Norway Airlines and the opening of airports such as Ålesund and later Molde and Kristiansund. It also expanded northward to Bodø and Tromsø. Smaller airports with short runways were eventually dropped as the fleet modernized. The airline retained a substantial charter business. It operated Mediterranean holiday flights marketed by Saga Tours and used Douglas DC-4 and DC-6 aircraft for leisure services. In 1969 it entered the jet age with the Fokker F-28 Fellowship and Boeing 737-200. The F-28 became an important domestic aircraft, while the 737 supported both scheduled and charter operations. By 1975 the F-27 fleet had been retired or transferred, and during the 1970s Braathens built a larger Boeing 737 fleet. Discount schemes such as Green Routes and later summer tickets were used to stimulate demand and improve load factors. Braathens experimented with broader transportation activities. It held an interest in Norwegian Air Lines and unsuccessfully sought offshore helicopter concessions. Braathens Helikopter was created in 1989 and began offshore crew transport in 1990 with Super Puma helicopters; it later merged with Helikopter Service. The main airline, meanwhile, tested two Boeing 767-200 aircraft in a premium-oriented charter configuration. The concept did not generate sufficient demand, and the aircraft were sold in 1986. The carrier then standardized its airline fleet around Boeing 737 aircraft. Boeing 737-400 and 737-500 aircraft arrived from 1989 onward, and the final 737-200s were retired by 1994. Competition increased from 1987, when Braathens was allowed to challenge SAS on additional domestic routes. International scheduled concessions followed, including routes to Denmark, the United Kingdom and Sweden. The company also expanded in Sweden by acquiring Transwede and Malmö Aviation. Norway deregulated its airline market on 1 April 1994. Braathens raised capital and became publicly listed, but deregulation removed the protective structure that had supported some routes and encouraged direct fare competition. The opening of Gardermoen in 1998 produced an especially damaging price war involving SAS and Color Air. Although Color Air ultimately failed, Braathens also suffered major financial strain. Braganza sold control to the SAS Group in 2001. Braathens was subsequently integrated with SAS Norway and merged on 1 May 2004 to form SAS Braathens. The independent Braathens brand therefore ended, although parts of its route network, aircraft operation and organizational heritage continued within the SAS system.

• 2004

  Merger into SAS Braathens

  [1]Braathens ASAen.wikipedia.org

  Braathens merges with SAS Norway on 1 May, ending its independent airline operations.

• 2001

  SAS Group takes control

  [1]Braathens ASAen.wikipedia.org

  Braganza sells control of Braathens to the SAS Group.

• 1998

  Gardermoen price war

  [1]Braathens ASAen.wikipedia.org

  The opening of Oslo Airport, Gardermoen leads to intense competition with SAS and Color Air, placing severe financial pressure on Braathens.

• 1997

  Corporate name shortened to Braathens

  [1]Braathens ASAen.wikipedia.org

  The long-standing Braathens SAFE identity is replaced by the shorter Braathens name.

• 1994

  Norwegian airline deregulation

  [1]Braathens ASAen.wikipedia.org

  The domestic market is deregulated and Braathens raises capital through an initial public offering and Oslo Stock Exchange listing.

• 1989

  Braathens expands international flying

  [1]Braathens ASAen.wikipedia.org

  The airline begins scheduled service to Billund and later adds routes to Newcastle and Malmö.

• 1986

  Fleet standardization around Boeing 737

  [1]Braathens ASAen.wikipedia.org

  The airline sells its Boeing 767 and remaining Fokker F-28 aircraft and moves toward an all-Boeing 737 fleet.

• 1969

  Jet operations begin

  [1]Braathens ASAen.wikipedia.org

  Fokker F-28 and Boeing 737-200 aircraft enter service, replacing much of the turboprop and piston fleet.

• 1958

  Fokker F-27 enters service

  [1]Braathens ASAen.wikipedia.org

  The airline introduces pressurized Fokker F-27 Friendship turboprops for domestic operations.

• 1954

  Scheduled operations become primarily domestic

  [1]Braathens ASAen.wikipedia.org

  After losing its independent international scheduled position, Braathens SAFE focuses on Norwegian domestic routes while continuing international charter flying.

• 1947

  First Far East service

  [1]Braathens ASAen.wikipedia.org

  The airline begins long-distance operations from Oslo to Hong Kong via Europe, the Middle East and South Asia.

• 1946

  Braathens is founded

  [1]Braathens ASAen.wikipedia.org

  Ludvig G. Braathen establishes Braathens South American & Far East Airtransport A/S through the Braganza group.

A Norwegian domestic network carrier combining scheduled services to regional communities with selected international scheduled and charter operations.

• Airline network · 1954

  Scheduled domestic passenger services

  Braathens's core offering was scheduled passenger transportation within Norway. The network linked Oslo with major western and northern cities and served smaller regional airports as concessions and airport infrastructure developed. Its domestic role made the airline one of the country's principal alternatives to SAS for much of its operating life.

• Airline network · 1989

  International scheduled services

  At different times Braathens operated scheduled routes to destinations including Billund, Newcastle, Malmö and London Gatwick. These services were introduced progressively after competition increased and the Norwegian regulatory environment became more permissive.

• Leisure aviation · 1959

  European charter flights

  Braathens operated holiday charter services marketed through tour operators, notably flights to Mediterranean destinations. Charter flying remained an important supplement to scheduled domestic operations and helped the airline use larger aircraft during leisure peaks.

• Aircraft-based airline product · 1969

  Boeing 737 services

  The Boeing 737 became Braathens's principal aircraft family. The airline used 737-200 aircraft from 1969, later adding 737-400 and 737-500 aircraft. The standardized fleet supported lower operating complexity across domestic, regional and selected international routes.

• Offshore aviation · 1990

  Braathens Helikopter offshore transport

  Braathens Helikopter provided helicopter transportation for offshore oil installations and their crews. It began operations in 1990 with Aérospatiale Super Puma helicopters and later merged with Helikopter Service.

• 1984First Business Class

  Scandinavia · European charter markets

  Braathens positioned its Boeing 767 charter operation as a more premium product under the First Business Class concept.

  Outcome. The low-density aircraft configuration did not attract enough customers willing to pay for the additional space, and the aircraft were sold in 1986.

  Source
• 1980Summer tickets

  Norway

  Braathens promoted lower-priced summer tickets to attract additional leisure and visiting-friends-and-relatives traffic during the seasonal travel period.

  Outcome. The pricing initiative was associated with higher load factors, although the available reference material does not provide a quantified result.

  Source
• 1976Green Routes

  Norway

  Braathens introduced restricted discounted fares known as Green Routes on selected services. The offer was designed to stimulate demand while applying conditions that protected the airline's revenue structure.

  Outcome. The program became part of the airline's broader use of promotional pricing to improve aircraft utilization and passenger load factors.

  Source

• 2004

  Merge Braathens with SAS NorwayM&A

  Background

  Following the SAS Group's acquisition of control, maintaining two separate Norwegian airline identities became strategically and operationally redundant.

  Action taken

  Braathens merged with SAS Norway on 1 May 2004 to form SAS Braathens.

  Aftermath

  The Braathens airline ceased to exist as an independent brand, although its network and operating assets continued within SAS.

  Source

• 2001

  Sell control to the SAS GroupM&A

  Background

  Financial pressure following deregulation, aircraft investment and domestic fare competition left Braathens vulnerable to acquisition.

  Action taken

  Braganza sold control of Braathens to the SAS Group.

  Aftermath

  Braathens became part of the SAS corporate structure and was later merged into SAS Norway.

  Source

• 1998

  Respond to the Gardermoen price warPrice change

  Background

  The opening of Oslo Airport, Gardermoen created new capacity and intensified competition among Braathens, SAS and Color Air.

  Action taken

  Braathens participated in aggressive fare competition while defending its domestic network and airport position.

  Aftermath

  The price war weakened Braathens financially. Color Air eventually failed, but Braathens did not recover sufficiently to remain independent.

  • Scandinavian Airlines — SAS competed aggressively on overlapping domestic routes.
  • Color Air — Color Air entered the same competitive environment and ultimately ceased operations after suffering losses.

  Source

• 1994

  Prepare for deregulated competitionStrategy

  Background

  Norway deregulated its airline market on 1 April 1994, ending the concession environment that had shaped domestic competition between Braathens and SAS.

  Action taken

  Braathens increased frequencies, launched additional direct routes, negotiated cost-saving labor arrangements and raised capital through a public offering.

  Aftermath

  The airline became more commercially aggressive but also more exposed to fare competition and the financial risks of fleet investment.

  • Scandinavian Airlines — SAS embraced the more competitive market and competed directly with Braathens on overlapping domestic routes.

  Source

• 1986

  Abandon the Boeing 767 charter experimentStrategy

  Background

  The two Boeing 767 aircraft had been configured with fewer seats than typical charter aircraft and could not generate sufficient premium demand.

  Action taken

  Braathens sold both aircraft and closed its Swedish charter operation in 1988, returning its main fleet strategy to Boeing 737 aircraft.

  Aftermath

  The decision simplified the fleet and reduced exposure to an unsuccessful premium charter model.

  Source

• 2004

  Braathens merges with SAS Norway[1]Braathens ASAen.wikipedia.org

  M&A · Leadership change

  Braathens was merged with SAS Norway on 1 May 2004, creating SAS Braathens and ending the airline's existence as an independent operating brand.

• 2001

  SAS Group acquires control of Braathens[1]Braathens ASAen.wikipedia.org

  M&A

  Braganza sold control of Braathens to the SAS Group after the airline came under financial pressure from fleet investment and intensified competition.

• 1998

  Braathens, SAS and Color Air enter a severe fare war[1]Braathens ASAen.wikipedia.org

  Pricing · Regulation

  The opening of Oslo Airport, Gardermoen, triggered aggressive competition on Norwegian domestic routes. The price war damaged the finances of Braathens and contributed to Color Air's eventual failure.

• 1998

  Gardermoen opening triggers airline price war[1]Braathens ASAen.wikipedia.org

  Pricing · Other

  The opening of Oslo Airport, Gardermoen led Braathens, SAS and Color Air into an intense contest over fares, capacity and market share.

• 1994

  Braathens SAFE becomes a publicly listed company[1]Braathens ASAen.wikipedia.org

  Other · Regulation

  The airline completed an initial public offering and was listed on the Oslo Stock Exchange as Norway's scheduled airline market moved into deregulation.

• 1994

  Braathens SAFE lists on the Oslo Stock Exchange[1]Braathens ASAen.wikipedia.org

  Other

  The airline raised capital through a public offering and became listed during Norway’s transition to a deregulated domestic aviation market.

• 1994

  Norwegian airline market is deregulated[1]Braathens ASAen.wikipedia.org

  Regulation

  Norway removed the concession framework that had divided domestic routes between established carriers, intensifying competition between Braathens and SAS.

1. 1Braathens ASAen.wikipedia.org