Several of those responsible is today clear that Braathens had nothing to live on. That it was acquired by SAS was inevitable.
A decades-long competition for Norwegian airline passengers was over. Although SAS had swallowed Braathens, got one of the most famous brands in Norway ever pass, and for many years after the acquisition flew further almost as if nothing had happened.
But then came English on the track and took over role SAS troublesome challenge.
Eventually the acquirer SAS out that the most unifying was to emerge as one company. This meant not only that many employees had to quit, but also that the name Braathens would whisper away.
31. March 2005 ceased to exist Braathens. The airline that flew “on Norwegian wings” were merged and became part of the SAS.
Would not give more money
Kjell Wilsberg was one of those who followed the company until last day . He worked in the company since 1974 and was head of government and public affairs when operating company ceased.
Could Braathens have been rescued and survived on today?
– No. The company had in reality no chance, he believes today.
– None of the owners wanted to or had the opportunity to line up with additional capital, then it was really no other way than to sell to avoid bankruptcy . Assets were sold away until there was nothing more to sell. That main competitor SAS would become our new owner, was very bitter for many, says Wilsberg.
He writes the last part of the story of Braathens for the foundation Ludvig G. Braathens funds. Still meet former Braathens employees at fixed times, to reminisce about the good years and keep old friendships alive.
Got the last of the family flysjefer
Erik G. Braathen was the last of the family who was the operational commander for the airline for ten years until 1999. He says he does not disagree with the conclusion that there was no way around sales and liquidation of “people plane.”
– The Company was characterized by good cohesion and a nice environment, but it was also the biggest challenge when we would take the necessary decisions to reduce costs. It was not easy to get to structural changes in such an organization, says Braathen today.
He thinks it has no intention to see in the rearview mirror and look for things that could have been done differently and that could have saved the company.
– All decisions must be seen in light of the time they were made in. But by all means, I had the course preferred that the history of the airline had been another, he said.
Troubled SAS all years
Ever since SAS was founded in the postwar years, had the small Norwegian challenger Braathens SAFE struggled to keep themselves in the market. It was no easy task for the three Scandinavian governments held a protective hand over SAS.
This continued more or less for decades.
For the early 90′s, when were all regulations repealed. Anyone could open routes wherever they wanted, and at the prices they even found out was correct.
It was then death struggle really started for Braathens. The grid had increased, prices had to be reduced and costs cut.
The transition should prove that Braathens failed:
Unable to cut
– There are few if any examples of “old” companies of Braathens’ size, has succeeded in transforming itself to low-cost operator, says Wilsberg.
The competition that came would be bloody and several companies had to give up. Braathens fought for life in a market where there were beggar all.
– 1990s was great customer decades. Braathens had no proper international network and was defenseless against SAS went ashore most major customer agreements. They had their big alliance network to play, tells Wilsberg.
It was the reason why Braathens eventually sought refuge in an alliance with Dutch KLM, to offer the profitable business travelers a worldwide grid.
Gardermoen was a bloodbath
But it would be worse. When Gardermoen opened in 1998 could SAS to attack what until then had been Braathens’ profitable grid in southern Norway. Color Air came in and exacerbated what was already a huge overcapacity.
Braathens frantic search more legs to stand on, and found out that it would storsatses in Sweden. It bought a Swedish company Transwede, for 2 million and later a company called Malmö Aviation.
– All this was an economic disaster and had no strategic value for the company. Too much of “war Checkout» 1.2 billion was spent to cover losses in Sweden. Without this, the company had held out longer, think Wilsberg.
As if the situation was not bad enough, it was decided to step away from the popular product with one class on board. The company came up with the “best and back”: Front curtain should be a generous serving, while those on cheap tickets to sit back and pay for all food.
– A cultural blunder
It did not take long before the entire gimmickry was an insult.
– It was a cultural blunder. The economy of it was not the worst, but the company confused people and got a lot of negative publicity. Suddenly not Braathens’ company for all. ” Also internally it was disputed. Oh would differentiate the travelers were somewhat basic stranger to all thinking and history of the company, believes Wilsberg.
Artificial basis for English
Researching aviation by Institute of Transport Economics, Harald Thune-Larsen, are unsure whether English had been started if it was not for that Braathens was swallowed by SAS.
– It had not been the same potential to undercut competitors SAS and Braathens as it was to undercut the exorbitant ticket prices to pooled SAS Braathens. The commissioning of English assumed, moreover, that bonus entitlements domestically should be banned, which would hardly have happened if there was still competition between SAS and Braathens, he said.
He says Braathens had the role as “the people’s airline” in Norway it offered simple and cheap flights to most people.
Aside from spending too much money in Sweden, the company did in his opinion a big mistake by sharing the cabin on domestic flights with curtain to separate business travelers and passengers with cheap tickets.
Not popular
– Best and back was an accident, and ruined people’s perception of the company as a simple and popular airline. They did not manage to change this before the company was acquired, said Thune-Larsen.
When Norwegian started got it totally different conditions than Braathens and had therefore better placed to succeed, he said:
– Kjos started with a clean slate, and could loop all unnecessary costs to make the ticket so cheap that people would travel with them instead of with SAS. The scheme of bonus points domestically was gone and passenger tax removed. Besides, English into the forefront of an adventurous passenger growth as English itself has helped with affordable tickets to more and more destinations, says Thune-Larsen.
