Aviation is famous for destroying capital. Rising jet fuel expenses, economic downturns, and ruthless price wars have sent thousands of carriers into bankruptcy. Yet a tiny handful of pioneer operators survived for more than a hundred consecutive years.
KLM Royal Dutch Airlines was established in October 1919. A few months later in December 1919, Colombian investors established SCADTA, which later became Avianca. Australia’s Qantas followed in November 1920. All three carriers still take to the skies today.
What protected these pioneers while rivals perished?
First, geography. Colombia’s rugged Andean mountain chains made overland transit between Bogotá and coastal ports slow and dangerous; air travel was not a luxury, it was an economic lifeline. In Australia, vast Outback distances gave Qantas an indispensable medical and mail distribution role.
Second, state backing. Early flag carriers functioned as diplomatic extensions of national sovereignty. KLM received the “Royal” predicate from Queen Wilhelmina before flying its maiden commercial service. State ownership, postal subsidies, and bilateral route protections cushioned these operators through the Great Depression and postwar reconstruction.
Longevity in aviation did not come from staying the same. KLM restructured and merged with Air France in 2004. Avianca survived Chapter 11 bankruptcy filings in 2003 and 2020. The oldest airlines survived because their home governments and creditors viewed their failure as too costly to accept.