History of Scandinavian Airlines System (1933–52) informations and photos

The history of Scandinavian Airlines System (SAS) from 1933 to 1951 covers the first attempts at transatlantic travel, the establishment of a consortium and finally the establishment of the consolidated SAS. Aerotransport, the national airline of Sweden, and Det Norske Luftfartselskap (DNL), the national airline of Norway, both started planning transatlantic routes in the mid-1930s. By 1939, negotiations were started with Det Danske Luftfartselskab (DDL) of Denmark, and by 1940 services were to begin. Because of the German occupation of Denmark and Norway, the plans collapsed. In Sweden, Svensk Interkontinental Lufttrafik (SILA) was founded to start private transatlantic flights, which commenced in 1945. Negotiations were started again, and in 1946 the consortium Overseas Scandinavian Airlines System (OSAS) was established to start routes to New York and South America.

From 1948, the airlines pooled all their aircraft into European Scandinavian Airlines System (ESAS), which used the SAS brand for all domestic and European services. However, ESAS was only a business agreement, and when DNL threatened to leave to cooperation in 1950, it was agreed to merge the operations of the three airlines into a consolidated consortium. With the merger, the national governments secured a 50% ownership of their respective holding companies. In the 1940s, SAS operated a fleet of Douglas DC-3, DC-4 and DC-6, Vickers VC.1 Viking, Saab Scandia land planes, and Short Sandringham and Junkers Ju 52 seaplanes.

The first discussion of a Scandinavian transatlantic route was in 1933, when DDL and Aerotransport conducted discussions with Charles Lindbergh. However, no specific plans were made. For Denmark, part of the interest was spurred with the possibility of reaching Greenland. DDL started a partnership with British interests, creating European & American Airways, which was planned to operate transatlantic flights from Denmark via United Kingdom. The company was inaugurated on 21 October 1935 in London, with GBP 5,000 in share capital. While the company remained in existence until the late 1940s, it never operated any aircraft.

In 1936, DNL started negotiations with Pan American Airways (Pan Am) about cooperation on the transatlantic route between Norway and the United States. DNL argued that Norway's location made it an ideal base for the European flights to North America. Pan Am would operate from New York to Reykjavík, while DNL would operate the service from Reykjavík to Bergen and onwards to various destinations in Europe. The contract was signed in March and DNL bought a Sikorsky S-43 flying boat, registered as LN-DAG and christened Valkyrien. However, after the aircraft was delivered and three weeks before the route was to be inaugurated, Pan Am changed their mind, canceled the agreement and decided that the transatlantic route should instead operate via Newfoundland to Foynes, Ireland, and via the Azores in the winter.

Rudolf Olsen, a major owner of DNL, stated afterwards that DNL was too small in comparison to Pan Am to make a stable alliance. Instead, Olsen wanted the four Nordic flag carriers to cooperate on transcontinental operations. Representatives from DNL, DDL, Aerotransport and the Finnish Aero met in Geilo, Norway, on 18 April 1937 to discuss possible strategies. The initial discussions regarded a closer cooperation between the four companies in Nordic and European routes, as well as agreement to try to coordinate legislation, fleets and contracts.

In 1936, Aerotransport and Aeroflot had started a cooperation on a route between Stockholm and Moscow, with connections from Stockholm to Siberia and Irkutsk and Vladivostok. Aerotransport wanted to connect westwards via DNL's network to Foynes, with connection to Pan Am's flights. However, the proposal was rejected by Aeroflot. The other problem was that Imperial Airways wanted to prioritize British, rather than Scandinavian, mail on west-bound flights, causing DNL to cancel their plans to connect to Ireland. In a meeting in Berlin on 10 January 1939, the four Nordic airlines agreed to let DNL continue to negotiate with Pan Am about pooling transatlantic flights, with DNL representing all four companies. Support was gained from the Nordic post companies, who would guarantee for the use of the route. DNL's Bernt Balchen went to the United States to negotiate with American authorities and suppliers to start a route.

In mid-1939, Aerotransport, DNL and DDL met in Oslo to negotiate possible transatlantic routes. By then, Shannon Airport in Ireland was under construction, and both Imperial Airways, Deutsche Lufthansa and KLM were planning to start transatlantic services. There was agreement that a route to Foynes should be established, and at the same time planning of a Scandinavian transatlantic route. A committee was established with representation from all four Nordic airlines. With the break-out of World War II, Pan Am terminated its Foynes route, instead moving it to the Azores to avoid the war zone. DNL started negotiations with Pan Am again, and proposed a pooling, where DNL chartered Pan Am aircraft and crew for the west-bound flights, while Pan Am flew the east-bound flights. With the Soviet invasion of Finland on 30 November 1939, Aero's interest in the cooperation was reduced, as the Finnish authorities concentrated on their war effort. On 2 January 1940, the committee presented a calculation for the post offices, whereby 700 kilograms (1,500 lb) post per flight would cost SEK 1.3 million per year. This was agreed to, and nine days later a delegation was sent to the US to negotiate.

The basis was that Stavanger Airport, Sola on the Norwegian West Coast was to be the hub. The delegation hoped to procure a Boeing 314, giving a capacity for 20 passengers and 2 tonnes (2.0 long tons; 2.2 short tons) of freight. One intermediate landing, planned at Botwood in Newfoundland, was needed before reaching New York. The trip was planned to take 26 and a half hours, comparing to the 13 days it took the delegation to reach Washington, D.C. Preparatory meetings with the Scandinavian ambassadors started on 26 January, followed by two months of negotiations with American authorities, manufacturers, airlines and airports, to insure rights to all aspects of the operations, including training of crew, insurance, agreements with the United States Postal Service, choice of route, weather services and schedules. The neutral American authorities were interested in establishing a route to the then-neutral Scandinavian countries, and the negotiations went well, with all necessary permissions and contracts gained. Pan Am and Juan Trippe set as a condition that the four countries establish a single consortium to function as Pan Am's counter-party. It was decided that Aerotransport initially would function as the counter-party.

The only lack of permission was from the Scandinavian authorities, from which the delegation had not had time to receive permission before it left. However, on 5 March, Aerotransport, DDL and DNL made an agreement with Pan Am to operate a route using a Boeing 314 Clipper flying boat from New York via Botwood and Reykjavík to Bergen. It was the American authorities who wanted a landing in Iceland, and Bergen was chosen instead of Stavanger because the latter lay within the area defined by American authorities as part of the war zone. The route would commence during the summer and operate eight times, with twelve services the following year. The aircraft was chartered from Pan Am for US$15,000 per trip. All formalities with external parties were completed on 12 March, and the operations approved by the board of the three Scandinavian airlines on 6 April. Representatives from the Scandinavian delegation visited Douglas, Lockheed and Pratt & Whitney, and planned to use Douglas DC-4 land planes from 1942, with up to two weekly round trips.

On 9 April 1940, Germany invaded Norway and Denmark, canceling the immediate plans for a transatlantic route. In Denmark, DDL received continued permission to operate domestic services from June, and to Berlin from 24 June. It was later extended to Munich, Vienna and Malmö, Sweden, and along with the main Copenhagen–Århus route continued throughout the war. In June 1943, DDL increased its share capital from DKK 3 to 15 million.

In Norway, DNL was permitted to operate a limited route in Northern Norway, until the pilots fled to Britain in 1941 to join the resistance. The airline suffered from a general mistrust both from the German and Allied authorities. The Germans regarded Norwegian shipowners as highly suspicious people, since these had their fleet organized in Nortraship and used in Allied convoys. The Norwegian authorities in exile were also distrustful of DNL, because the airline had taken initiative to operate a route, essentially helping the German forces. There was also an uncertainty as to whether the national airline of Norway should continue to be private, or if a state-owned airline should be established. To look at the issue, the Norwegian government-in-exile established the Norwegian Civil Aviation Board to look at all matters regarding civil aviation. It was this board which was permitted to negotiate traffic rights with other countries, make purchase rights of aircraft and participated in the foundation of the International Air Transport Association and the International Civil Aviation Organization. Throughout the war, the board took no steps to procure civilian aircraft for after the war.

Sweden, although neutral, became isolated in relation to North America, as all mail had to be sent eastward via the Soviet Union, or westwards via Portugal. The first became impossible after the Soviet Union and Germany went to war on 22 June 1941, and the latter from 7 December when the United States entered the war. The British Royal Air Force started a route from Leuchars, Scotland, to Stockholm, but this was limited to transport of mail and passengers used for the Allied forces. From 1942, Aerotransport introduced mail flights from Stockholm to Scotland, which were relayed onwards to North America. On 10 September 1942, the board of Aerotransport recommended that Sweden start its own intercontinental services. SEK 6 million was needed to purchase two four-engine planes; the plans called for the other Nordic flag carriers to join after the end of the war. The government did not want to threaten the Swedish neutrality, and therefore instructed the state-owned company not to negotiate with an Allied power. Instead, they wanted a private company to make the arrangements, and the privilege was granted to the Wallenberg family.

Marcus Wallenberg jr. contacted several of the shipping companies in Gothenburg to join the venture, but these were skeptical. They required that the head office and hub be located there, and Aerotransport was excluded from participating. This was not acceptable for Wallenberg, and instead the capital was raised from Stockholm-companies; the largest owner became the Wallenberg-controlled, Gothenburg-based Svenska Amerika Linien. Svensk Interkontinental Lufttrafik (SILA) was founded on 22 February 1943 with SEK 12 million in share capital. The work of maintenance of the aircraft was subcontracted to Aerotransport.

Five days later, a delegation from SILA was sent to the UK and US to purchase aircraft and receive traffic rights. The negotiations in the US were led by Per A. Norlin, who attempted to procure Douglas DC-4 aircraft. Because of Aerotransport's route to Moscow, the connection would allow a service between the allied US and Soviet Union, via a neutral country. However, the US was not willing to sell any aircraft until after the war, so Norlin agreed to purchase ten converted Douglas C-54 (DC-4) for delivery after the war for SEK 20 million. This was the first contract for delivery of civilian planes for after the war made by Douglas. Loans were secured from the First National City Bank of New York and Stockholms Enskilda Bank.

The procurement of ten aircraft was more than initially needed by SILA, so negotiations were held with DDL and DNL about selling some of the aircraft to them. Because the owners of DNL were not able to hold meetings and the airline inactive, and in part because of the transfer of Norwegian negotiation power to the Norwegian Civil Aviation Board, DNL did not attempt to procure any aircraft. Still, negotiations continued between the flag carriers, and DNL stated in 1944 that they were interested in procuring some aircraft. US authorities urged the Scandinavian airlines to make a common bid for the traffic rights, and the flag carriers started discussing creating a consortium. Among the issues was the distribution of ownership: DDL suggested a 40% stake for SILA and 30% for DDL and DNL, with the latter two granting Aero 10% if they should join; DNL proposed an equal ownership between the three.

In 1943, a fleet of seven American B-17 Flying Fortress had emergency landed in Sweden, and the pilots and planes were being held by Sweden. Norlin started to negotiate with the US Air Force for a trade; the US was in more of a need of pilots than aircraft, and agreed to sell the aircraft for US$1 each to SILA in exchange for the release of the pilots. In June 1944, the aircraft were transferred to Saab for conversion to passenger aircraft. However, permission to operate routes from Sweden to the United States was never agreed upon during the war.

After the end of the war, DNL had no assets or personnel, while DDL had a single airworthy aircraft. SILA, on the other hand, had a fleet of intercontinental B-17 aircraft and started flights to New York on 27 June. By 1946, the DC-4 were gradually delivered, with three sold to Aerotransport, two to DDL and two to DNL. In Norway, the Norwegian Civil Aviation Board and the Royal Norwegian Air Force conducted all flights in 1945. Capital was raised during the year, including a 20% stake by the government, and a 20-year concession was granted in February 1946.

Negotiations between the three flag carriers started in Copenhagen on 2 February 1946. For Sweden, Aerotransport and SILA had partially opposing opinions about a Scandinavian cooperation. In the government and the state-owned Aerotransport, it was considered desirable that Sweden operate the route on its own, because of the country's size and its established airline. There was also a conflict, where forces were wanting to merge Aerotransport and SILA, in part to nationalize the intercontinental airline, in part to achieve economy of scale.

Among the issues of the negotiations, was the need for a workshop that met American standards. At the time, only Aerotransport had such facilities, although DDL planned to establish one at Copenhagen Airport. Initially the US had also required a single counter-party, in a consortium, but this was later withdrawn, so the airlines were free to instead establish a pool. However, the advantages of the consortium were preferred by the negotiators, because it would remove the nationality from the employees and operations. A holistic proposal was launched on 7 June, where DDL and DNL would receive two parts ownership, and SILA three parts; each partner would receive two board members. All employees would work for the consortium, while the aircraft were to be leased from the partners. The head office was to be located in Stockholm.

Disagreement existed over which airport should be used as a hub. To have a nationally neutral CEO, Canadian–American Peter Redpaths was selected. There was also agreement that the airline should have a single brand name, and both "Scandinavian Airlines System" and "Scandinavian United Airlines" was suggested. It was also agreed that the consortium should take over SILA's operations to South America and to Ethiopia (although SILA lost the traffic rights there the same year).

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