Air Norway - History

History

Air Norway was founded in 2003 Gunnar Hagsveen. Scheduled services from Ørland to Oslo commenced on 23 May 2003. The company had originally planned to also operate aircraft between Ørland and Bodø Airport, to two main air stations of the Norwegian Air Force, but these plans were abandoned. Just after the route commenced, the owner became seriously ill, and marketing and sales efforts were neglected, causing a less-than-predicted cabin load. Hagsveen died on 26 December, and his heirs encouraged local businesses to purchase shares in the company. Air Norway commenced weekly flights from Oslo to Aalborg Airport in Denmark from 31 January 2004. In February 2004, the company received a loan for NOK 650,000 from the municipality to operate pay off other debt. At the same time, the airline was sold to Sven Rosenvinge.

By 2005, the airline was still losing money. On 21 February, the Municipality of Ørland bought shares for NOK 1 million, while North Flying bought the remaining half of the company. Mayor Hallgeir Grøntvedt (Center Party) stated that while it was a risky investment for a municipality with limited budget, the airline was of great strategic importance for Ørland and Fosen. When the European Union introduced new security rules for airports from 1 January 2005, Ørland Airport was exempt, because of the small size of the aircraft. By April, the airport had received notice that 100% security control would still have to be introduced, costing the municipality NOK 465,000 per year. At the same time, Air Norway was still losing money, and applied to the municipality to not be charged landing fees at the airport. When this was granted, it saved the company NOK 540,000 per year. In July, Air Norway transported its 10,000th passenger and signed a new contract with the Air Force, which was responsible for more than half the ridership. In November, the administration of the airline was moved from Drammen to Ørland and Fosen Næringshage. Snorre Hvitsand was then hired as managing director.

In 2006, the company experienced a 40% passenger growth, and from 6 September, Air Norway also introduced services on Wednesday. The same year, the municipality started a NOK 1.8 million upgrade to the airport. When it opened on 3 September 2007, it became an international airport and allowed transit for passengers to Aalborg, plus increased security and a general renovation of the terminal building from 1978.

Following the bankruptcy of Coast Air in January 2008, Air Norway and North Flying were awarded an interim contract to operate the route from Fagernes to Oslo, with subsidies from the Norwegian Ministry of Transport and Communications. At the same time, the airline started a route from Fagernes to Trondheim Airport, Værnes. In March, they won the public service obligation (PSO) contract, granting them the route until 31 March 2009. During the first half of 2008, ridership at Fagernes Airport was reduced by 27.3%, compared with the first half of the previous year. From 1 April 2009, the Fagernes PSO contract was lost to DOT LT, and Air Norway terminated those routes.

In 2009, Air Norway lost 1,300 passengers after the Norwegian Air Force decided to not permit their employees to travel from Ørland, but instead have to take cheaper flights from Trondheim, located about a two hour drive away. The reduction in ridership, along with a strengthening of the Danish krone in relation to the Norwegian, caused Air Norway to lose NOK 100,000 by August 2009. The mayor of Ørland stated at that he was working to make the route receive state grants as a PSO. In February 2010, the municipality granted NOK 62,500 for Air Norway to run a television commercial during the semi-final of Melodi Grand Prix.