Highland Airways Limited was established in Inverness, Scotland, by Ted Fresson in 1933 to provide passenger and freight air services between the Scottish mainland and the Northern Isles of Orkney and Shetland, and between their islands.

The chairman was a doctor, Thomas Alexander, and also on the board was Robert Donald, a director of the local motor engineers Macrae and Dick.

[3] Other investors included the North of Scotland, Orkney & Shetland Steam Navigation Company and George Law, owner of The Scotsman newspaper.

Fresson organised willing islanders into teams of up to twelve men who would grab the wings of a landing aeroplane (the ground speed would be low in the high winds) and hold it down while it was tied to a heavy vehicle.

[8] Fresson made use of the De Havilland DH.60G Gipsy Moth G-AAWO which he had brought from his previous company, and used it for personal transport and for occasional charter flights (it could only carry one passenger).

On 3 October 1933 Fresson flew a businessman from Thurso to Lerwick in 'AWO when weather forced them to land in a field next to the Kettletoft Hotel on Sanday.

Gandar Dower had recently established Aberdeen Dyce airport but had denied Fresson the use of it, forcing Highland Airways to make other arrangements to serve the city.

[14] On 29 May 1934 Highland started the UK's first internal airmail service, with a contract for the Inverness to Orkney route, the first flight being flown by Fresson in Dragon G-ACCE.

In October the same year, Orkney County Council awarded the airline a contract to carry patients between the Northern Isles and the hospital in Kirkwall, and later, to Aberdeen.

Whitehall Securities Corporation had recently bought Northern & Scottish Airways, who were based in Glasgow and specialised in flights to the Western Isles.

[6] In May 1936 the Air Ministry opened a new radio station in Kirkwall, making navigation, weather reporting and general communication much easier, and encouraging both Fresson and Gandar Dower to expand their operations to the Shetland Isles.

They linked with LMS Railway, and with David MacBrayne, the Scottish ferry company which established Western Isles Airways as its investment tool.