Teddy Air
Encyclopedia
Teddy Air AS was a regional airline
Regional airline
Regional airlines are airlines that operate regional aircraft to provide passenger air service to communities without sufficient demand to attract mainline service...

, based at Skien Airport, Geiteryggen
Skien Airport, Geiteryggen
Skien Airport, Geiteryggen is an airport located 2.5 km southwest of the city centre of Skien, Norway. Skien Lufthavn AS operates the airport and this company is owned by the local municipality of Skien in the Grenland region. Services are provided by Danish Air Transport to Bergen and Stavanger...

, in Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...

. Operating between 1989 and 2004, the company operated Britten-Norman Islander
Britten-Norman Islander
The Britten-Norman BN-2 Islander is a 1960s British light utility aircraft, regional airliner and cargo aircraft designed and originally manufactured by Britten-Norman of the United Kingdom. The Islander is one of the best-selling commercial aircraft types produced in Europe. Although designed in...

, Embraer 110 and Saab 340
Saab 340
The Saab 340 is a discontinued Swedish two-engine turboprop aircraft designed and initially produced by a partnership between Saab and Fairchild Aircraft in a 65:35 ratio...

 aircraft. The company started by providing a scheduled service between Skien and Oslo
Oslo
Oslo is a municipality, as well as the capital and most populous city in Norway. As a municipality , it was established on 1 January 1838. Founded around 1048 by King Harald III of Norway, the city was largely destroyed by fire in 1624. The city was moved under the reign of Denmark–Norway's King...

 in 1990, followed by services to Stavanger
Stavanger
Stavanger is a city and municipality in the county of Rogaland, Norway.Stavanger municipality has a population of 126,469. There are 197,852 people living in the Stavanger conurbation, making Stavanger the fourth largest city, but the third largest urban area, in Norway...

 in 1993 and Bergen
Bergen
Bergen is the second largest city in Norway with a population of as of , . Bergen is the administrative centre of Hordaland county. Greater Bergen or Bergen Metropolitan Area as defined by Statistics Norway, has a population of as of , ....

 in 1994. In 1996, it won a contract with the Ministry of Transport
Norwegian Ministry of Transport and Communications
The Royal Norwegian Ministry of Transportation and Communications is a Norwegian ministry established in 1946, and is responsible for transportation and communication infrastructure in Norway. It is led by Magnhild Meltveit Kleppa...

 from Oslo to Fagernes
Fagernes
is the largest settlement in the valley of Valdres, Norway, with a population of 1,801. Fagernes is the administrative centre of the municipality of Nord-Aurdal.See video from the Fagernes Town : *...

. It was involved in intense competition with other regional airlines, notably Coast Air
Coast Air
Coast Air AS was a regional airline based at Haugesund Airport, Karmøy in Norway. It was Norway's fourth-largest airline and operated domestic services within Norway, in addition to international services. Routes were concentrated along the West Coast, as well as some public service obligation...

 and Guard Air, following the deregulation of the aviation market. It also had a single international service to Gothenburg
Gothenburg
Gothenburg is the second-largest city in Sweden and the fifth-largest in the Nordic countries. Situated on the west coast of Sweden, the city proper has a population of 519,399, with 549,839 in the urban area and total of 937,015 inhabitants in the metropolitan area...

, and from 1999 it served Stord Airport, Sørstokken
Stord Airport, Sørstokken
Stord Airport, Sørstokken is a municipal regional airport located at Sørstokken in Stord, Norway. Located from Leirvik, it is the only airport with scheduled services in Sunnhordland. The airport consists of a single asphalted long 15–33 runway. It is classified as an airport of entry.Danish...

. From 1999, the company was transformed to a virtual airline
Virtual Airline (economics)
In economics, a virtual airline is an airline that has outsourced as many possible operational and business functions as it can, but still maintains effective control of its core business. Such an airline focuses on operating a network of air services, and outsourcing non-core activities to other...

, which wet lease
Wet lease
Aircraft leases are a number of types of leases used by airlines and other aircraft operators. Airlines lease aircraft from other airlines or leasing companies for two main reasons; to operate aircraft without the financial burden of buying them, and to provide temporary increase in capacity...

d aircraft from Golden Air
Golden Air
Golden Air is a regional airline based in Trollhättan, Sweden. It operates scheduled services to destinations in Finland, Norway and Sweden, as well as ad hoc charter services. Its main base is Trollhättan-Vänersborg Airport, with hubs at Helsinki Airport, Stockholm-Bromma Airport and...

. The company ceased operations in 2004.

History

Establishment

In April 1988, Norwegian regional airline
Regional airline
Regional airlines are airlines that operate regional aircraft to provide passenger air service to communities without sufficient demand to attract mainline service...

 Norving
Norving
Norving A/S was a regional airline that operated in Norway between 1971 and 1993. It had roots back to the establishment of Varangfly in 1959. At the most, the company had eight bases and 27 aircraft.-History:...

 terminated all scheduled services in Southern Norway. As a consequence, airports such as Skien Airport, Geiteryggen
Skien Airport, Geiteryggen
Skien Airport, Geiteryggen is an airport located 2.5 km southwest of the city centre of Skien, Norway. Skien Lufthavn AS operates the airport and this company is owned by the local municipality of Skien in the Grenland region. Services are provided by Danish Air Transport to Bergen and Stavanger...

, were left without an airline and services to the capital, Oslo
Oslo
Oslo is a municipality, as well as the capital and most populous city in Norway. As a municipality , it was established on 1 January 1838. Founded around 1048 by King Harald III of Norway, the city was largely destroyed by fire in 1624. The city was moved under the reign of Denmark–Norway's King...

. Teddy Air was subsequently established as a Skien
Skien
' is a city and municipality in Telemark county, Norway. It is part of the traditional region of Grenland. The administrative centre of the municipality is the city of Skien. Skien is also the administrative centre of Telemark county....

-based company to provide an air route between Skien and Oslo Airport, Fornebu
Oslo Airport, Fornebu
Oslo Airport, Fornebu was the main airport serving Oslo and Eastern Norway from 1 June 1939 to 7 October 1998. It was then replaced by Oslo Airport, Gardermoen and the area has since been redeveloped. The airport was located at Fornebu in Bærum, from the city center. Fornebu had two runways, one...

. Founded by Harald Sørensen in 1989, the largest owners were Skien Business Development Fund and Telemark Business Development Fund. It would provide four round trips with a Britten-Norman Islander
Britten-Norman Islander
The Britten-Norman BN-2 Islander is a 1960s British light utility aircraft, regional airliner and cargo aircraft designed and originally manufactured by Britten-Norman of the United Kingdom. The Islander is one of the best-selling commercial aircraft types produced in Europe. Although designed in...

. The company stated that it needed 8,000 passengers annually to cover costs, with the ticket price set at about . The fiercest competition would come from the Vestfold Line of the Norwegian State Railways, where a train from Skien to Oslo ran each hour. The three-hour train trip cost NOK 167, compared to the 25-minute flight. Concession
Concession (contract)
A concession is a business operated under a contract or license associated with a degree of exclusivity in business within a certain geographical area. For example, sports arenas or public parks may have concession stands. Many department stores contain numerous concessions operated by other...

 was granted by the Ministry of Transport
Norwegian Ministry of Transport and Communications
The Royal Norwegian Ministry of Transportation and Communications is a Norwegian ministry established in 1946, and is responsible for transportation and communication infrastructure in Norway. It is led by Magnhild Meltveit Kleppa...

 in August 1989, but the airline did not commence operations until 18 July 1990.

In Grenland
Grenland
Grenland is a traditional district in the county of Telemark, in the south of Norway. It is composed of the municipalities Skien, Porsgrunn, Bamble, Nome, and Siljan. Sometimes the municipalities Kragerø, and Drangedal are considered being part of the area...

, the metropolitan area surrounding Skien, there was a lot of opposition to the airline, and several local businesspeople claimed that it would be better if Norsk Air
Norsk Air
Widerøe Norsk Air AS, formerly known as Vestfoldfly, Norsk Flytjeneste AS and Norsk Air AS, was a Norwegian airline based at Sandefjord Airport, Torp...

 was awarded the contract, or Skien Airport was closed and locals instead used the nearby Sandefjord Airport, Torp. Norsk Air stated that it would not be possible for them to make money on the Skien–Oslo route; despite that, it operated from Skien to Bergen Airport, Flesland
Bergen Airport, Flesland
Bergen Airport, Flesland is an international airport located southwest of Bergen, Norway. Opened in 1955, it is the second-busiest airport in Norway, with 5,296,325 passengers in 2010. Flesland is operated by the state-owned Avinor...

 and Stavanger Airport, Sola
Stavanger Airport, Sola
Stavanger Airport, Sola is an international airport located in Sola, Norway, southwest of Stavanger. It is Norway's third-busiest airport, with both fixed-wing aircraft and helicopter traffic for the offshore North Sea oil installations...

. In 1993, Norsk Air announced that it would no longer fly from Skien, and would focus all their operations at Sandefjord. Teddy Air subsequently took over the Stavanger route, while the Bergen route was granted to Air Stord, despite Teddy Air having applied for the concession. In 1994, the company had a revenue of NOK 7.5 million, and a NOK 1 million profit.

Expansion

Following the deregulation of the airline market in 1994, which allowed any European Economic Area
European Economic Area
The European Economic Area was established on 1 January 1994 following an agreement between the member states of the European Free Trade Association and the European Community, later the European Union . Specifically, it allows Iceland, Liechtenstein and Norway to participate in the EU's Internal...

-airline to operate any route they wished, Teddy Air tried to start services at Moss Airport, Rygge
Moss Airport, Rygge
Moss Airport, Rygge is an international airport serving Moss, Oslo and Eastern Norway, located in Rygge. It is both a regional airport for Østfold as well as an airport for low-cost airlines. The airport is located outside Moss and outside Oslo and is owned and operated by the private company...

. Since it at the time was the military-only Rygge Air Station
Rygge Air Station
Rygge Air Station is located in the municipalities of Rygge and Råde in Østfold, Norway. The Royal Norwegian Air Force operates various squadron and aircraft at the airbase, including Sea King helicopters, F-5 Freedom Fighters, Dassault Falcon 20 aircraft as well as Bell 412 helicopters...

, with no passenger facilities, the airline was not successful in receiving permission. However, it did choose to start competing with Air Stord on the Skien–Bergen route, starting 8 May 1995. Using its Embraer 110 aircraft, it launched tickets for under NOK 1000, compared with the NOK 1290 fee offered by Air Stord. The latter had aircraft half the size, but offered 31 flights per week, compared to the 16 offered by Teddy Air. In addition, Coast Air
Coast Air
Coast Air AS was a regional airline based at Haugesund Airport, Karmøy in Norway. It was Norway's fourth-largest airline and operated domestic services within Norway, in addition to international services. Routes were concentrated along the West Coast, as well as some public service obligation...

 launched two weekly round trips. The routes were mainly used by commuters working on offshore oil platforms in the North Sea
North Sea
In the southwest, beyond the Straits of Dover, the North Sea becomes the English Channel connecting to the Atlantic Ocean. In the east, it connects to the Baltic Sea via the Skagerrak and Kattegat, narrow straits that separate Denmark from Norway and Sweden respectively...

. By 1995, 60% of the airline had been bought by Hermann Løvenskiold.

In 1996, the company won the first public service obligation
Public Service Obligation
In transport, public service obligation or PSO is an arrangement in which a governing body or other authority offers an auction for subsidies, permit the winning company a monopoly to operate a specified service of public transport for a specified period of time for the given subsidy...

 tender that was issued by the Ministry of Transport and Communications
Norwegian Ministry of Transport and Communications
The Royal Norwegian Ministry of Transportation and Communications is a Norwegian ministry established in 1946, and is responsible for transportation and communication infrastructure in Norway. It is led by Magnhild Meltveit Kleppa...

. Starting 1 August, Teddy Air started serving Fagernes Airport, Leirin
Fagernes Airport, Leirin
Fagernes Airport, Leirin serves Fagernes and the surrounding valleys of Valdres, Hallingdal and Gudbrandsdal in Southern Norway, from Oslo. Opened in 1987, it is owned and operated by state-owned Avinor. The airport is above sea level, and has a runway...

, with routes to Oslo and Bergen. The contract gave a subsidy of NOK 23.7 million for three years, and was 15% lower than what Coast Air had been receiving. On 20 May 1997, Teddy Air started its first international route, from Stavanger to Gothenburg
Gothenburg
Gothenburg is the second-largest city in Sweden and the fifth-largest in the Nordic countries. Situated on the west coast of Sweden, the city proper has a population of 519,399, with 549,839 in the urban area and total of 937,015 inhabitants in the metropolitan area...

 in Sweden.

After the opening of Oslo Airport, Gardermoen
Oslo Airport, Gardermoen
Oslo Airport, Gardermoen is the principal airport serving Oslo, Norway. It acts as the main domestic hub and international airport for Norway, and the second-busiest airport in the Nordic countries. A hub for Scandinavian Airlines and Norwegian Air Shuttle, and a focus city for Widerøe, it is...

, in 1998, which is located 50 kilometers north of Oslo, both Teddy Air and Guard Air announced they were going to start routes to the new airport. Both established six daily round trips—Teddy Air using an Embraer 110 and Guard Air using a Dornier 228. The new airport would make driving to the Oslo Airport about an hour longer from Grenland, and both airlines hoped to create a feeder service. Teddy Air withdrew from the route after one month, after having lost more than NOK 1 million.

In February 1999, Air Stord filed for bankruptcy. On 21 February, Teddy Air launched a route between Stord Airport, Sørstokken
Stord Airport, Sørstokken
Stord Airport, Sørstokken is a municipal regional airport located at Sørstokken in Stord, Norway. Located from Leirvik, it is the only airport with scheduled services in Sunnhordland. The airport consists of a single asphalted long 15–33 runway. It is classified as an airport of entry.Danish...

, and Oslo, using Saab 340
Saab 340
The Saab 340 is a discontinued Swedish two-engine turboprop aircraft designed and initially produced by a partnership between Saab and Fairchild Aircraft in a 65:35 ratio...

 aircraft. This allowed four daily round trips during the week, and two on Sundays. Other airlines saw the route as attractive, and Coast Air
Coast Air
Coast Air AS was a regional airline based at Haugesund Airport, Karmøy in Norway. It was Norway's fourth-largest airline and operated domestic services within Norway, in addition to international services. Routes were concentrated along the West Coast, as well as some public service obligation...

 launched eight daily round trips between the two airports. Teddy Air was soon forced to withdraw from the route, after it was unable to make any profits from it. The Fagernes routes were lost from 1 August 1999, when the contract was won by Widerøe
Widerøe
Widerøe's Flyveselskap AS, trading as Widerøe, is a regional airline in Norway and part of the SAS Group. It operates a fleet of 34 Bombardier Dash 8 aircraft , serving 41 domestic and 6 international destinations...

.

Virtual airline

Following the steep decline in routes, the company was reorganized into a virtual airline
Virtual Airline (economics)
In economics, a virtual airline is an airline that has outsourced as many possible operational and business functions as it can, but still maintains effective control of its core business. Such an airline focuses on operating a network of air services, and outsourcing non-core activities to other...

 in 1999. All operations were taken over by the Swedish airline Golden Air
Golden Air
Golden Air is a regional airline based in Trollhättan, Sweden. It operates scheduled services to destinations in Finland, Norway and Sweden, as well as ad hoc charter services. Its main base is Trollhättan-Vänersborg Airport, with hubs at Helsinki Airport, Stockholm-Bromma Airport and...

, who would operate the Saab 340 aircraft. At the same time, Golden Air bought half of Teddy Air. In October, Coast Air announced that they had too few aircraft to continue flying from Stord, and would terminate operations. Teddy Air became the only airline to serve Stord. 1999 returned a loss of NOK 6.9 million. In 2004, Teddy Air terminated all services. The contract with Golden Air was discontinued, and the hangar at Geiteryggen was sold. The company remained on paper until 2005, when the equity was gone and the entity was dissolved.

Destinations

The following is a list of destinations served by Teddy Air:
City Airport Code Airport Name Remarks
IATA ICAO
Norway
Bergen
Bergen
Bergen is the second largest city in Norway with a population of as of , . Bergen is the administrative centre of Hordaland county. Greater Bergen or Bergen Metropolitan Area as defined by Statistics Norway, has a population of as of , ....

BGO ENBR Bergen Airport, Flesland
Bergen Airport, Flesland
Bergen Airport, Flesland is an international airport located southwest of Bergen, Norway. Opened in 1955, it is the second-busiest airport in Norway, with 5,296,325 passengers in 2010. Flesland is operated by the state-owned Avinor...

Fagernes
Fagernes
is the largest settlement in the valley of Valdres, Norway, with a population of 1,801. Fagernes is the administrative centre of the municipality of Nord-Aurdal.See video from the Fagernes Town : *...

VBD ENFG Fagernes Airport, Leirin
Fagernes Airport, Leirin
Fagernes Airport, Leirin serves Fagernes and the surrounding valleys of Valdres, Hallingdal and Gudbrandsdal in Southern Norway, from Oslo. Opened in 1987, it is owned and operated by state-owned Avinor. The airport is above sea level, and has a runway...

Oslo
Oslo
Oslo is a municipality, as well as the capital and most populous city in Norway. As a municipality , it was established on 1 January 1838. Founded around 1048 by King Harald III of Norway, the city was largely destroyed by fire in 1624. The city was moved under the reign of Denmark–Norway's King...

OSL ENGM Oslo Airport, Fornebu
Oslo Airport, Fornebu
Oslo Airport, Fornebu was the main airport serving Oslo and Eastern Norway from 1 June 1939 to 7 October 1998. It was then replaced by Oslo Airport, Gardermoen and the area has since been redeveloped. The airport was located at Fornebu in Bærum, from the city center. Fornebu had two runways, one...

FBU ENFB Oslo Airport, Gardermoen
Oslo Airport, Gardermoen
Oslo Airport, Gardermoen is the principal airport serving Oslo, Norway. It acts as the main domestic hub and international airport for Norway, and the second-busiest airport in the Nordic countries. A hub for Scandinavian Airlines and Norwegian Air Shuttle, and a focus city for Widerøe, it is...

Skien
Skien
' is a city and municipality in Telemark county, Norway. It is part of the traditional region of Grenland. The administrative centre of the municipality is the city of Skien. Skien is also the administrative centre of Telemark county....

SKE ENSN Skien Airport, Geiteryggen
Skien Airport, Geiteryggen
Skien Airport, Geiteryggen is an airport located 2.5 km southwest of the city centre of Skien, Norway. Skien Lufthavn AS operates the airport and this company is owned by the local municipality of Skien in the Grenland region. Services are provided by Danish Air Transport to Bergen and Stavanger...

Hub
Stord
Stord
Stord is a municipality in the county of Hordaland, Norway. Stord is sometimes called "Norway in miniature" - as it has such a variety of landscapes: coastline, fjords, forests, agricultural land, and mountain areas....

SRP ENSO Stord Airport, Sørstokken
Stord Airport, Sørstokken
Stord Airport, Sørstokken is a municipal regional airport located at Sørstokken in Stord, Norway. Located from Leirvik, it is the only airport with scheduled services in Sunnhordland. The airport consists of a single asphalted long 15–33 runway. It is classified as an airport of entry.Danish...

Stavanger
Stavanger
Stavanger is a city and municipality in the county of Rogaland, Norway.Stavanger municipality has a population of 126,469. There are 197,852 people living in the Stavanger conurbation, making Stavanger the fourth largest city, but the third largest urban area, in Norway...

SVG ENZV Stavanger Airport, Sola
Stavanger Airport, Sola
Stavanger Airport, Sola is an international airport located in Sola, Norway, southwest of Stavanger. It is Norway's third-busiest airport, with both fixed-wing aircraft and helicopter traffic for the offshore North Sea oil installations...

Sweden
Gothenburg
Gothenburg
Gothenburg is the second-largest city in Sweden and the fifth-largest in the Nordic countries. Situated on the west coast of Sweden, the city proper has a population of 519,399, with 549,839 in the urban area and total of 937,015 inhabitants in the metropolitan area...

GSE ESGP Gothenburg City Airport
Gothenburg City Airport
Gothenburg City Airport or Göteborg City Airport , formerly known as Säve Flygplats, is Gothenburg's second international airport, located north-west from the centre of Gothenburg on the island of Hisingen, Bohuslän, Sweden. It is located within the borders of Gothenburg Municipality, hence its...

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