Manufacturer · Sweden · Founded 1937
Saab: Sweden’s Regional Airliners
Fly to a small town in rural Australia, a Scottish island or a remote corner of Canada, and there’s a fair chance the plane waiting for you is a Saab 340. That’s a little surprising, because Saab stopped building airliners in 1999. Its story shows how a company can build a genuinely good aircraft and still decide the business isn’t worth staying in.
From fighters to feeders
Saab was founded in 1937 in Trollhättan, Sweden, to build military aircraft for a neutral country that wanted its own air force industry. In 1940 it merged with an aircraft maker in Linköping, which became its aviation home. Over the decades it became famous for fighter jets, and for a while for cars too.
In the late 1970s, Saab saw a gap in the market. Airlines in America had just been deregulated, and smaller regional carriers needed modern, efficient aircraft of around 30 seats to feed passengers into big hubs. Saab teamed up with the American company Fairchild to build one. Saab built the fuselage and did final assembly in Linköping; Fairchild built the wings and tail.
The arc
Saab’s airliner years
- 1937The bet
Saab is founded
In Trollhättan, Sweden; it merges with ASJA of Linköping in 1940.
- 1983Proof
Saab 340 first flight
On 25 January, built with the American company Fairchild.
- 1992The bet
Saab 2000 first flight
On 26 March; one of the fastest turboprop airliners ever.
- 1997Break
Exit announced
Saab decides to end production of the 340 after heavy losses.
- 1999Break
Last airliners
Production of both the 340 and the 2000 ends.
The Saab 340
The aircraft, first called the SF340, flew on 25 January 1983. It was a twin-turboprop: two jet turbines turning propellers, which is more fuel-efficient than a pure jet on short hops. Fairchild soon pulled out, and Saab took over the whole programme. It went on to build 459 of them. Pilots and engineers liked it because it was tough, simple and could handle short, rough runways, which is exactly why so many are still earning money today, decades later.
The Saab 2000: fast, but too late
Saab followed up with a bigger, much faster aircraft. The Saab 2000 first flew on 26 March 1992 and remains one of the fastest turboprop airliners ever built, nearly as quick as some regional jets. But that was the problem. Regional jets such as the Embraer ERJ and Bombardier CRJ were arriving, and passengers preferred jets. Only 64 Saab 2000s were sold.
With competition from jets on one side and rival turboprops like the ATR and Dash 8 on the other, Saab was losing money on every model. On 24 December 1997 it announced it would stop building the 340, saying it had lost about SEK 3 billion in three years. The last Saab airliners were built in 1999, and the company returned to defence, where it builds the Gripen fighter today.
The real numbers
Saab in figures
459
Saab 340s built
1983–1999
64
Saab 2000s built
1994–1999
~SEK 3bn
Losses
On the 340 in the three years before the exit
1999
Last airliners
Saab returns to defence
The lesson
Saab’s exit is a reminder that building a good airliner isn’t enough. You also need the right size, at the right moment, at a price airlines can afford, and enough sales to cover the huge development cost. The same pressures ended Fokker in 1996. Today the regional turboprop market belongs mostly to ATR and the Dash 8, while the Saab 340 soldiers on, the aircraft that outlived its maker’s interest in building it.
Iconic aircraft
1983
Saab 340
A 30-ish seat twin-turboprop; 459 built and still widely flown.
1992
Saab 2000
A stretched, much faster turboprop; 64 built.
Sources & Further Reading
Common Questions
Frequently Asked Questions
Why did Saab stop making airliners?
Sales of the 340 and 2000 fell as regional jets and rival turboprops took the market. In December 1997 Saab announced it would end Saab 340 production, saying the programme had lost about SEK 3 billion in three years. Production of both types ended in 1999.
Is Saab the car company?
They share roots. Saab started as an aircraft maker in 1937 and later began building cars. The car business became a separate company, and Saab AB today is a defence and aerospace group, known for the Gripen fighter.
Where can you fly on a Saab 340?
On many regional routes around the world, especially in Australia, North America, Scandinavia and the Scottish islands. Its toughness and short-runway performance keep it popular on thin routes to small towns.
How fast is the Saab 2000?
It is one of the fastest turboprop airliners ever built, cruising at well over 600 km/h, close to the speed of some regional jets. That speed came with higher costs, which is part of why only 64 were sold.
What does SF340 mean?
The first version was a joint project between Saab and the American company Fairchild, so it was called the SF340. Saab built the fuselage and did final assembly in Linköping; Fairchild built the wings and tail. Saab later took over the whole programme.