In 1944, as it became clear that hostilities in Europe (the Second World War) would soon end, SAAB realised that the company had to diversify from purely military endeavours if it were to survive.

The board therefore decided to manufacture a twin-engined, short- to medium-haul passenger aircraft, as a successor for the Douglas DC-3.

Delivery started in October 1950 but, after testing, specification had changed to the Pratt & Whitney R-2180-E Twin Wasp E. Two Brazilian airlines (VASP and Aerovias do Brasil) also ordered a total of six aircraft.

The prototype was subsequently converted to a luxury private executive aircraft for the Brazilian industrialist Olavo Fontoura.

The Scandia project was initiated in 1944 by a supposed need (after World War II) for an aircraft carrying 25–30 passengers for a distance of up to 1000 km.

The plane also turned out to be easily maneuvered with one engine shut down, which at the time was typically not the case with twin-engined aircraft.

Scheduled services by Scandias were operated also to European cities including Amsterdam, Brussels and London Airport (Heathrow) between 1951 and 1955.

Until Scandias were withdrawn in 1957 they also served in a modest first class configuration on the new route from Scandinavia to Moscow via Riga.

VASP operated its fleet of new and ex-SAS Scandias on intra-Brazilian scheduled flights between October 1950 and late 1966.

The sole surviving Scandia is the 16th built, ex VASP PP-SQR, which is preserved in deteriorating condition by a museum at Bebedouro in the state of São Paulo, Brazil.

It stands outdoors in at the Eduardo André Matarazzo Museum of Weapons, Vehicles and Machines [pt; es] in Bebedouro, Brazil.