page_title: Maersk Air
section_title: Danish deregulation
hierarchical_section_title: Maersk Air / History / Danish deregulation
context_page_description: Maersk Air A/S was a Danish airline which operated between 1969 and 2005. Owned by the A. P. Møller–Mærsk Group, it operated a mix of scheduled and chartered passenger and cargo services. Headquartered at Dragør, its main operating bases were Copenhagen Airport, Billund Airport and Esbjerg Airport. The airline had offshore helicopter operations from 1975 to 1999 and had three airline subsidiaries: Maersk Air UK, Maersk Commuter, and Star Air.
  The airline was founded on the foundations on the purchase of Falck Air on 21 February 1969. Fokker F27s were bought and domestic services from Copenhagen to Odense and Stauning. From 1971 to 1995 Maersk participated in Danair, which held a monopoly on all domestic services. Maersk Air was heavily involved in the inclusive tours market during the 1970s, operating the Boeing 720B and 737-200. From 1981 Maersk started international flights, first out of Billund and from the 1990s out of Copenhagen.
  Maersk Air gradually invested in new aircraft, including the Fokker 50, Boeing 737 Classic, and later the 737-700. During the 1990s the number of international services increased, often codesharing with foreign airlines.
context_section_description: Maersk Air began services from Billund to Frankfurt in 1993, and a year later it started flights from Copenhagen to Kristiansand. To meet the upcoming deregulation, Maersk carried out a major fleet rearrangement in 1993. The airline sold its Fokker 50s and leased them back. Meanwhile, it procured six Boeing 737-500s, which were delivered in 1996.
  Unlike Cimber, Maersk initially declined to participate in SAS' frequent-flyer program, EuroBonus, which was founded in 1992. With the demise of Danair, Maersk Air focused on improving its international connections. Its primary strategy was to establish routes from Billund to European destinations with codeshare agreements with major European airlines. Gradually the services were upgraded from Fokker 50 to 737-500s. Danair was dissolved on 1 October 1995, when the domestic airline industry in Denmark was deregulated.
  Maersk's success in Jutland was noticed by SAS, who in October 1996 opened its first service out of Billund, to Frankfurt. This was the first route in which the two airlines competed for head to head. In response, Maersk Air commenced services out of SAS' stronghold at Copenhagen Airport to Milan, Geneva and Stockholm the following year. Additional routes out of Billund were added in 1997. Flemming Knudsen took the position as CEO on 12 January 1998. On 3 March the first 737-700 was delivered, with Maersk Air being the European launch customer.
  With its eight daily round trips, Maersk Air only captured ten percent of the market on the Copenhagen–Stockholm route, losing money on it. Maersk, therefore, started negotiations with British Airways and KLM to see if they could become part of an airline alliance. They were in close negotiations with what would become Oneworld, but pulled out in the last minute.
  With the 14 June 1998 opening of the Great Belt Fixed Link, car, coach and rail transport became faster between Jutland and Funen on the one hand, and Zealand on the other, cutting travel time by an hour. This had an effect on patronage, with a significant drop in domestic traffic. 
  The same year the government introduced a domestic air tax of DKK 150 on all domestic flights, which further contributed to the fall in domestic ridership. Maersk Air anticipated a significant drop and reduced services from a 737-500 to a Fokker 50. Yet passenger numbers dropped to a third and the service was terminated on 13 June 1998. Ole Dietz took over as managing director on 1 March 1999.
  After the Oneworld negotiations failed, Maersk Air turned to SAS in an attempt to initiate a cooperation. Negotiations commenced in early 1997, and the deal was announced on 8 October 1998, and took effect 28 March 1999. Maersk would adopt EuroBonus and codeshare all domestic flights, flights out of Copenhagen and select Billund services. In addition to the publicly stated clauses, the agreement also contained a series of illegal collusions. Maersk and SAS split up the market between them, so they no longer would fly on competing routes. This involved that Maersk Air would withdraw from its Copenhagen services to Stockholm and Geneva. Maersk Air also agreed to—gradually so to not awake suspicion—withdraw from its various codeshare agreements with other airlines than SAS.
  The case was followed up by the EU Commission and the Danish authorities, who carried out a dawn raid on 15 June 2000. Maersk Air was sentenced to a fine of €17.5 million, while SAS was fined €43.75 million. As a consequence, Dietz resigned as CEO and Hansen, who had been appointed chairman, also withdrew. Flemming Ipsen was hired as a new CEO, while Troels Dilling was hired as chairman.
caption: Boeing 737-400 at Faro Airport in 1992
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