Kato Airline

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Kato Air, officially Kato Airline AS and trading as Kato Air, was a Norwegian airline that operated in Northern Norway from 1995 to 2008. Its main fleet consisted of Dornier 228 aircraft, though it flew other small planes as well. The company was based at Harstad/Narvik Airport, Evenes in Evenes Municipality, and commercial operations began in 1996.

Origins and early work
An early contract had Kato Air delivering newspapers from Harstad, and in 1997 the airline expanded its fleet with a Maule M-5 and a Cessna 208. By 1997 the company had invested about 15 million kroner. Its first permanent contract was with Verdens Gang to distribute newspapers from Harstad to Bodø and Tromsø, later expanding to Dagbladet. The airline’s early revenue largely came from these newspaper contracts, with other major ad hoc charter customers including Statoil and the Norwegian Directorate for Nature Management.

Expansion and routes
In 1999, Kato Air added two Dornier 228s and started a scheduled service from Harstad/Narvik to Bodø and Tromsø. The route proved unviable and was stopped later that year. During the same period, Kato Air took over the fixed-wing operations of Helitrans and established a base at Trondheim Airport, Værnes, while shifting its focus toward charter work for oil companies, notably flying charters from Trondheim to Brønnøysund.

Public service obligations and Norway Post
In 2003, Kato Air won two public service obligations (PSO) routes from Bodø to Røst and to Framnes (Narvik), which were subsidized by the government. Later that year the airline also won a major contract with Norway Post to operate postal flights from Trondheim to Bodø, Harstad/Narvik, and Tromsø. The Kunde was allowed to operate these routes with a Dornier 228, a smaller aircraft than Widerøe’s Dash 8 used on the same services.

Incidents and financial difficulties
Kato Air faced two serious incidents: a Dornier 228 crash caused by a lightning strike on December 4, 2003, and a scheduled service hijacking on September 29, 2004. After 2005, several routes, including Brønnøysund/Framnes and the newspaper service, were reduced or terminated, and the company’s finances deteriorated. By 2006, patronage on the Narvik route had fallen sharply, and the firm lost several key contracts, including the newspaper flights, Statoil, and Narvik.

Decline and closure
In 2006 Kato Air won a renewed three-year PSO contract for the Bodø–Røst route (April 2006 to March 2009), but overall business declined. The company posted a 10 million kroner loss in 2007, and efforts to win more routes continued, including a bid for PSO routes in Finnmark, which Widerøe won. On August 28, 2008, the Civil Aviation Authority of Norway withdrew Kato Air’s maintenance certificate for serious regulatory breaches, and the board decided to liquidate the company on September 1, 2008.

Founders and name
Kato Air was founded on February 16, 1995. It received its air operator’s certificate for general aviation on February 21, 1996, after an interim period during which it cooperated with another airline. The company was started and owned by Karl Johan Karlsen (chairman) and his wife, Torlaug Karlsen (CEO). The name “Kato” comes from the first two letters of their first names. The base at Harstad/Narvik Airport, Evenes was notable for being the first airline to operate there. The fleet began with a Piper PA-31 Chieftain and a Cessna 172 in 1995, with further additions in subsequent years, including a Piper PA-34 Seneca in 1998, a Cessna 208 in 1997, and a Maule M-5. The 2008 fleet size was four aircraft.