It was created to use some of the assets of the failed ventures Airco and its subsidiary, Aircraft Transport and Travel, which was acquired by BSA in February 1920.
During the First World War Daimler had acquired considerable aviation experience manufacturing aero engines and aircraft, including bombers.
Their own test-ground beside the Daimler factory had been compulsorily purchased to become the main RAF testing ground for aircraft built in the Coventry district.
[2] From October 1922 until early 1924, Daimler Airway operated daily scheduled flights from Alexandra Park Aerodrome Manchester to Croydon Airport London.
IAL immediately discontinued Daimler's route to the north of England, the monopoly airline not being interested in serving any UK points outside London.
On 7 April 1922, two days after Daimler commenced operations with the aircraft, it collided with a Compagnie des Grands Express Aériens Farman Goliath (registration F-GEAD) over Picardie, France,[7] 60 miles (97 km) north of Paris.
[2] On 14 September 1923, de Havilland DH.34 G-EBBS operating the evening service from Croydon to Manchester crashed near Ivinghoe Beacon, Buckinghamshire, during an attempted forced landing due to bad weather.