the route, but only Coast Air and Widerøe were deemed qualified; Coast Air could operate for NOK 2 million annually less than Widerøe, and therefore received the concession. Operation started on 3 September 1990, with the concession valid until 24 October 1993. In 1991, Coast Air flew 5,000 passengers to and from Fagernes Airport. With a NOK 6.8 million subsidy, it was the most expensive subsidized route per passenger in the country. This was largely due to a 20% cabin load. In August 1991, Coast Air received concession until 1993 for the route Haugesund–Bergen, but the Haugesund–Stavanger route was canceled. In March 1992, Coast Air was denied a concession to operate from Stord to Stavanger; instead, the concession was granted to Air Stord. Coast Air started flying from Skien Airport in 1993, with a route to Bergen. On 1 April 1994, the Norwegian airline market was deregulated. Airlines no longer needed to apply for concession from the government, but could fly any route they wanted to. For the first time, several airlines could establish themselves on the same route. The exception was the state-subsidized regional routes, that would become subject to public service obligations (PSO) from 1 April 1997. Following the deregulation, Coast Air introduced a route from Bergen to Kristiansand Airport, Kjevik with a Jetstream 31. From 1995, the airline was forced to pay much higher fees to the Norwegian Civil Aviation Administration, following the decision that all commercial plans, also those under , should pay flight fees. In October, Coast Air was close to buying Air Stord, but the company was instead sold to Aker. In 1995, two new Jetstream 31 aircraft were delivered, and the Twin Otter aircraft were transferred to the new route between Stord and Stavanger. A third Jetstream was delivered the following year, and the Twin Otter was taken out of service. Public service obligations The state-subsidized regional airline contracts were made subject to PSO in 1996. In a trial tender for the Fagernes route. Five domestic airlines bid, and Teddy Air won. Their bid was NOK 23.7 million, 15% lower than the former subsidy for Coast Air. In the main tender, the Ministry of Transport and Communications issued seven packages, of which Coast Air chose to bid for two—to the airports in Namdal and Helgeland, and to Andøya Airport, Andenes. All seven packages were won by the incumbent operator Widerøe. The new tenders