October 1987. The state had initially paid 60% of the NOK 29.3 million investments for the version of the airport, and the rest was financed by municipal and county grants. The increased cost of building a longer runway was estimated at NOK 59 million, financed by loans and municipal grants, plus a NOK 10 million investment from Dansk Folkeferie. The airport was owned by Valdres Lufthavn A/S, a privately held limited company with six municipalities as its principal shareholders. Following the airport's establishment, the Norwegian State Railways' Valdres Line was closed in 1989. By 1988, building costs had increased from NOK 88 to 131 million. The municipalities had co-signed for a foreign loan, and were forced to pay NOK 3.5 million annually just in interest, in addition to the operating cost of the airport; these were aggravated by not only the loss of the sole scheduled service, but also considerably less charter traffic than estimated. In 1990, the airport company was forced to refinance, and NOK 61 of 85 million in dept was refinanced, and the obligations transferred from the airport company to the municipalities and the county. However, by 1991, passenger numbers were above 20,000, three quarters coming from charter traffic. On 1 January 1996, Fagernes Airport was nationalized, along with 25 other regional airports, and put under the control of the Norwegian Airport Authority (now Avinor). Following the closure of Geilo Airport, Dagali in 2003, Fagernes experienced an increase in charter traffic. Operators Norsk Air started a route from Fagernes to Oslo Airport, Fornebu, and Bergen Airport, Flesland, on 4 November 1987, using Embraer EMB 120 Brasilia aircraft. The route turned out to be unprofitable, and was terminated on 1 June 1988, after the company had lost NOK 5 million. About 4,500 passengers were using the airport each year, compared to the 120,000 carried annually by the Valdresekpressen coach service on the to Oslo. Local politicians contacted Widerøe to discuss the possibility of introducing scheduled services, but the airline stated that it would only fly if it was granted subsidies. An agreement for the provision of subsidies on services to Oslo and Bergen was not reached with the Ministry of Transport until 1990. The state agreed to provide NOK 4.5 million, with the municipalities providing another NOK 2.6 million, and Oppland County Municipality NOK 2 million. The county and municipalities were allowed to reduce their subsidies in the