Editing Braathens ASA (section)

===Deregulation===

The first stages towards deregulation started in 1987 with Braathens SAFE being permitted to compete with SAS on the Oslo–Bergen and Western Norway–Trondheim–Bodø–Tromsø route, plus once daily Oslo–Trondheim–Bodø, as well as Tromsø–Longyearbyen, in an attempt to increase domestic competition.<ref>Tjomsland and Wilsberg, 1995: 291–294</ref> From 1988, Braathens SAFE was granted a series of international route concessions. The first, to [[Billund, Denmark|Billund]], Denmark, started in 1989, and the second, to [[Newcastle upon Tyne|Newcastle]], started the following year.<ref>Tjomsland and Wilsberg, 1995: 295–300</ref> A route to [[Malmö]], Sweden, started in 1991 and on a week's notice in 1992, Braathens SAFE started flying to [[Gatwick Airport|London Gatwick]], after the bankruptcies of [[Norway Airlines]] and [[Dan-Air]].<ref>Tjomsland and Wilsberg, 1995: 299–304</ref> Busy Bee went bankrupt in 1993 and their regional services were instead subcontracted to [[Norwegian Air Shuttle]].<ref>{{cite news |title=Norwegian Air Shuttle på ruinene etter Busy Bee |agency=[[Norwegian News Agency]] |date=27 January 1993 |language=no}}</ref><ref>{{cite news |title=Nytt selskap flyr fra Bergen |author=Valderhaug, Rune |work=[[Bergens Tidende]] |date=28 January 1993 |language=no}}</ref>

[[File:Braathens SAFE 737-400 LN-BRB.jpg|thumb|left|[[Boeing 737-400]] in 1990]]
[[Braathens Helikopter]] was established by Braganza in 1989 after negotiating agreements with [[Norsk Hydro]], [[Phillips Petroleum]] and [[Statoil]] to provide helicopter transport for their crews to their offshore oil installations [[Ekofisk oil field|Ekofisk]], [[Oseberg oil field|Oseberg]], [[Gullfaks oil field|Gullfaks]], [[Veslefrikk oil field|Veslefrikk]].<ref name=asgaut>{{cite news |title=Braathen med helikopterselskap |last=Asgaut |first=N. |work=[[Dagens Næringsliv]] |page=2 |date=1 September 1989}}</ref><ref>{{cite news |title=Klar til luftkamp om offshorekunder |last=Bø |first=Trond |work=[[Aftenposten]] |page=14 |date=3 September 1990}}</ref> This was the first time the incumbent Helikopter Service had received competition on their offshore helicopter services.<ref>{{cite news |title=Braathens Helikopter i luften |last=Bø |first=Trond |work=[[Aftenposten]] |page=26 |date=23 May 1990}}</ref> Four 19-seet [[Aérospatiale Super Puma]] helicopters were ordered.<ref name=asgaut /> Services started on 1 September 1990.<ref>{{cite news |title=Vellykket jomfrutur for Braathens Helikopter |agency=[[Norwegian News Agency]] |date=1 September 1990}}</ref> In 1992 the helicopter airline signed an agreement to fly for [[BP]] to [[Ula oil field|Ula]] and [[Gyda oil field|Gyda]].<ref>{{cite news |title=Braathens Helikopter får storkontrakt med BP |agency=[[Norwegian News Agency]] |date=10 September 1991}}</ref> Braathens Helikopter and Helikopter Service announced on 1 October 1993 that the two companies would merge from 1 January 1994.<ref>{{cite news |title=Helikopter-fusjon |work=[[Bergens Tidende]] |page=5 |date=1 October 1993}}</ref>

The deregulation process, which would eliminate the need for concessions for routes, was driven by Norway's [[1994 Norwegian European Union membership referendum|application]] for membership of the [[European Union]]. Since the airline's conception, Braathens SAFE had been a staunch opponent to the concession system and an avid proponent of free competition in the airline industry. With a deregulation around the corner, the airline changed stance and warned against the consequences of a free market. In contrast, SAS embraced the new system.<ref>Tjomsland and Wilsberg, 1995: 320–322</ref> Braathens SAFE's main concern was that their high debt incurred after the purchase of the new aircraft would make them [[market liquidity|illiquid]] in a [[price war]].<ref name=tw327>Tjomsland and Wilsberg, 1995: 327–334</ref>
The airline started negotiating [[airline alliance]] with larger haulers, but turned both those and a merger proposal with SAS down.<ref>Tjomsland and Wilsberg, 1995: 308–317</ref> The Norwegian airline market was deregulated on 1 April 1994, as the third country in Europe.<ref name=tw327 />

[[File:Braathens SAFE 737-500 LN-BRD Sommerflyet.jpg|thumb|A [[Boeing 737 Classic|Boeing 737-500]] in a special summer livery]]
Both Braathens SAFE and SAS had been [[cross subsidization|cross-subsidizing]] their routes as part of the concession agreements, and Braathens SAFE was losing money on the Haugesund–Bergen route and flights to Røros.<ref>Tjomsland and Wilsberg, 1995: 334–335</ref> A three-year wage agreement was reached with the trade unions to keep costs down, and the company raised additional capital in an [[initial public offering]] and subsequent listing on the [[Oslo Stock Exchange]] on 10 January 1994. After the listing, Braganza retained 69% of the company.<ref>Tjomsland and Wilsberg, 1995: 336–339</ref> On 1 April, service frequencies increased on the Oslo–Bergen route and the airline introduced direct flights from Oslo to Tromsø and [[Harstad/Narvik Airport, Evenes]], later supplemented with direct services to Bodø.<ref>Tjomsland and Wilsberg, 1995: 340–341</ref> The following two years, Braathens SAFE also introduced scheduled international flights to [[Rome]], as well as summer routes to [[Jersey]] and [[Nice]].<ref name=intlsched>{{cite news |title=Braathens vil konkurrere med SAS på Stockholm-ruten |agency=[[Norwegian News Agency]] |date=18 June 1996 |last=Lillesund |first=Geir |language=no}}</ref> However, Braathens SAFE terminated their routes from Bergen to Bodø, Harstad/Narvik and Tromsø, making the passengers switch planes in Trondheim.<ref>{{cite news |title=Braathen vil ikke fly direkte Bergen Nord-Norge |last=Valderhaug |first=Rune |date=20 January 1994 |page=6 |language=no}}</ref> Braathens signed agreements with many of Norway's large companies in 1995 in exchange for large discounts.<ref>{{cite news |title=Bråstopp for fly-bonus |work=[[Verdens Gang]] |date=28 January 1995 |last=Johnsen |first=Alf Bjarne |page=5 |language=no}}</ref>