Det Norske Luftfartselskap A/S (literally "The Norwegian Aviation Company") or DNL, trading internationally as Norwegian Air Lines, was an airline and flag carrier of Norway. Founded in 1927, it operated domestic and international routes from 1935 to 1941 and from 1946 to 1951. It became one of the three founders of Scandinavian Airlines System (SAS) and became one of its three holding companies from 1951, with a 28% stake and listed on the Oslo Stock Exchange. DNL was renamed SAS Norge ASA in 1996 and was merged in 2001 to create the SAS Group.

The company was founded as Det Norske Luftfartselskap Fred. Olsen A/S in 1933, after Fred. Olsen & Co. took over the assets of a failed airline with the same name from 1927. After taking over the incumbent Widerøe the following year, allowing five other shipping companies a partial ownership and changing the company's name to Det Norske Luftfartselskap Fred. Olsen & Bergenske A/S, DNL started domestic seaplane routes based at Oslo Airport, Gressholmen, and later Oslo Airport, Fornebu, using Junkers Ju 52 aircraft. In 1935, DNL was close to starting transatlantic flights in cooperation with Pan Am, but services never commenced despite purchasing a Sikorsky S-43 flying boat. After the outbreak of World War II, DNL ceased operations from 1941 to 1946.

From then, DNL started international flights using Douglas DC-3 and introduced Short Sandringhams on domestic sea routes. Along with Aerotransport of Sweden and Det Danske Luftfartselskab of Denmark, DNL founded Overseas Scandinavian Airlines System to pool transatlantic flights. In 1948, all of DNL's services were re-branded as SAS and pooled through European Scandinavian Airlines System. The company experienced four fatal accidents.

History

Establishment

The first DNL was registered on 4 May 1927, with a share capital of NOK 6,500, with Arnold Ræstad and the main shareholder. On 18 June, the share capital was raised to NOK 50,000, including a 20% stake owned by the Municipality of Oslo and Norway Post. At the time, the only service to Norway was Lufthansa, who operated from Gressholmen Airport in Oslo via Gothenburg and Copenhagen to Warnemünde in Germany. Both DNL and Norske Luftruter applied for ground handling for Lufthansa at Gressholmen. This was granted to Norske Luftruter, but DNL was granted the concession to operate the ferry to the island from Oslo East Station.Nerdrum (1986): 39–40

In 1930, the government appointed a civil aviation commission, led by Admiral von der Lippe, to consider all aspects of civil aviation in Norway. It concluded in 1932, and recommended that a single, large national airline be established. The same year, the Municipality of Oslo and the Norwegian Ministry of Defence appointed a committee with the goal of building a civilian airport near Oslo. It concluded in June, and recommended that the airport be built at Fornebu. By 1934, construction had started, although the airport would not open until 1 June 1939.Nerdrum (1986): 41–42

On 1 September 1933, the Oslo-based shipping company Fred. Olsen & Co., owned by the brothers Thomas Fredrik Olsen and Rudolf Olsen, announced their plans to establish a national airline. The foundation of the company was made on 16 October 1933, with Thomas Olsen, Rudolf Olsen, Johan L. Müller, Ganger Rolf and Bonheur—all within the Fred. Olsen sphere—as owners. The airline was established with a share capital of NOK 750,000 and took over the former DNL. The new company was named Det Norske Luftfartselskap Fred. Olsen A/S and hired Hjalmar Riiser-Larsen—since 1921 director of the Civil Aviation Council—as managing director. The Olsen brothers and Müller were all elected to the board. The company's initial plans were to gain the operating rights for the airports which were under construction, including Fornebu; Kristiansand Airport, Kjevik; and Stavanger Airport, Sola. The other was receive a state grant to start a service from Oslo, via Kristiansand, to Amsterdam in cooperation with KLM. Domestically, the airline wanted to operate the route from Oslo to Kristiansand and from Kristiansand to Stavanger, Bergen and Ålesund.Nerdrum (1986): 42–45

An application was sent the government, at the time Mowinckel's Third Cabinet, with a proposal for a ten-year concessions using land planes. Routes were to start off with a five-month service, and gradually increase to a full-year service from 1940. The company stated that it needed NOK 500,000 annually in support from the state and Norway Post for the service. In 1933, the brothers Viggo Widerøe and Arild Widerøe—who would found Widerøe in 1934—also applied for routes in the same areas, but using sea planes on the route from Oslo via Kristiansand and Stavanger to Haugesund. Also Norske Luftruter applied, but a three-year concession was granted to Widerøe. The government stated that no airports had been built yet, and would not be in the immediate future, so it was better to start with sea plane services.Nerdrum (1986): 45–57

Riiser-Larsen went on a national lecture tour to gain support for civil aviation from local politicians and businesspeople. He also negotiated agreements to pool flights to Sweden with Aerotransport, to Denmark with Det Danske Luftfartselskab, to Germany with Lufthansa and to the United Kingdom with Imperial Airways. By early 1934, DNL decided that they would instead apply for initial seaplane routes using two Waco Cabin. During the debates in parliament, the minority governing Liberal Party was in favor of Widerøe-operated sea plane routes, while the majority opposition from the Agrarian Party and the Labor Party wanted to increase investments in land airports.Nerdrum (1986): 58–63

In 1933, Thomas S. Falck was appointed director of Bergenske Dampskibsselskab (BDS). Fred. Olsen wanted a partner for DNL, in part to strengthen its geographic spread, and meetings were held between Olsen family and Falck to introduce the Bergen-based company as a partner in DNL. On 7 November 1934, Bergenske became a partner in DNL, and the company renamed Det Norske Luftfartselskap Fred. Olsen og Bergenske A/S. Johan Wulfsberg from BDS became a board member of DNL. As a reply to DNL's new concession application to make short-term sea plane routes using a Junkers Ju 52, the government urged DNL to make an alliance or merger with Widerøe. By then, four regional shipping companies—Vesterålske, Nordenfjeldske, Stavangerske and Arendalske—had bought the majority of Widerøe.Nerdrum (1986): 64–65

Falck took contact with the other four shipping companies, and on 18 December the six shipping companies agreed to merge their interests into DNL. Ownership was split 40% by Fred. Olsen, 38% by Bergenske and 22% by the other four shipping companies. Widerøe was initially planned to be either dissolved or take over the smaller seaplane routes. The state was permitted to appoint a member of the schedule planning committee. The company received a share capital of NOK 1.6 million.Nerdrum (1986): 65–67 DNL bought 51% of Widerøe, and the airline continued without scheduled services, operating air taxi, school and general aviation, plus a limited number of post routes in Northern Norway.Nerdrum (1986): 80–81

On 16 March 1935, Mowinckel's Third Cabinet was replaced by the Labor Nygaardsvold's Cabinet. They wanted to stimulate the economy through public investments, and decided that construction of airports was to be accelerated. On 5 April, DNL was granted concession for a sea plane route along the coast from Oslo to Tromsø, plus the international route from Oslo via Kristiansand to Amsterdam. DNL received NOK 200,000 in state grants, plus NOK 100,000 from Norway Post, for the first year of operation. DNL decided to purchase a three-engine Junkers W 34. It was registered as LN-DAB on 1 June 1935 and named Ternen. Riiser-Larsen and Bernt Balchen were hired to manage the company, while marketing and sales were done by Fred. Olsen.Nerdrum (1986): 71–75 Terje Rabben was employed to run the DNL operations from the base at Gressholmen.

Pre-war operations

To start the route from Oslo to Bergen immediately, a Ju 52 was wet leased from Lufthansa. It was delivered on 7 June and initially kept the blue Lufthansa livery, including a swastika. The aircraft was registered as LN-DAE, christened Havørn and later received DNL's livery. Operations were scheduled to commence on 7 June, but fog forced a delay until 11 June. After that there were flown 180 trips with a 100% regularity. Training was done by German crew on board Havørn. Travel time from Oslo to Bergen was four and a half hours, with intermediate stops in Moss, Arendal, Kristiansand, Stavanger, and Haugesund. It cost NOK 95 to fly the full journey. During the first season, DNL transported 3,214 passengers and of mail. It also took over Norwegian representation for Aerotransport, DDL, KLM, Sabena, Air France and Aero, and joined the International Air Traffic Association. At the end of the year, Havørn was purchased. On 6 June 1936, DNL registered its second Ju 52, LN-DAF Najaden. After the Havørn Accident eleven days later, the airline purchased another Ju 52, LN-DAH Falken, used from Lufthansa.Nerdrum (1986): 75–80

In 1936, DNL and Balchen—who had a wide range of contacts in the US—started negotiations with Pan American Airways (Pan Am) about cooperation on a 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 in Ireland, and via the Azores in the winter. Valkyrien was instead used on domestic routes.Nerdrum (1986): 83–87

During the second season, DNL increased the routes to also include Bergen–Tromsø and Tromsø–Honningsvåg. A night post route was flown from Oslo to Gothenburg. During the five months of operation, the airline flew and transported 2,300 passengers. From 1937, the state received the right to appoint two of the company's eight board members. That year also saw DNL start its first international route, when Valkyrien was started the route between Oslo and Stockholm. Part of the reason for the route was that transport to the Soviet Union could not go via Germany, where the only contemporary international flights from Oslo went. However, the Stockholm-service was not profitable, and terminated on 31 July. Stavanger Airport, Sola opened on 30 May, but with only a single land airport, no routes were started by DNL. In cooperation with DDL, Lufthansa and ABA, DNL entered the pool that flew the route from Oslo via Gothenburg to Copenhagen.Nerdrum (1986): 87–90