First airport

Military considerations led to a proposed airport at Lakselv. Despite a Norwegian neutrality policy, there was fear that Norway could be occupied by foreign powers who wanted to take advantage of the country's strategic position. The military, therefore, wanted to construct airfields throughout the country to increase the air force's mobility. Especially Finnmark was regarded as a key location, given the increased Soviet militarization on the Kola Peninsula. Increased military funding was granted beginning in 1937 and the following year. The result was a triangular runway built at Banak.

German Occupation

In May 1940, the airport was occupied by the Royal Air Force, before the Luftwaffe took over control.

During the World War II German occupation of Norway, Banak was taken over by the Luftwaffe. They were planning an attack on the Soviet Union from Finnmark and decided to designate Banak as their main air base in Northern Norway. By September 1940, the main runway was extended to 1,000 by 200 m (3,280 by 660 ft) with a wooden surface. In addition, three hangars were built, allowing the air base to house bombers. The main function of the air station was to attack the Arctic convoys. By 1943 there were two parallel runways, both 1,800 m (5,900 ft) long. The air base mainly operated Torpedo bombing missions on allied convoys in and out from Russia.

The air station was blasted in October 1944 during Operation Nordlicht, the German retreat from Finnmark. The Royal Norwegian Air Force took control over the airfield in 1945 and started reconstruction. In 1945, the Air Force operated scheduled flights from Bardufoss Air Station via Banak to Kirkenes Airport, Høybuktmoen; at Bardufoss a corresponding flight was offered to Oslo. The service lasted only the one season. Later the runway was used to serve air ambulances. During the late 1940s, part of the wooden runway was removed and used for other construction projects.

Interest in Banak rose with the Czechoslovak coup d'état of 1948 and fears of Soviet intervention in Norway. Finnmark, located on the Norway–Soviet Union border, became of particular interest for the military. Although specific plans were articulated, no construction was carried out. Norway's entry into the North Atlantic Treaty Organization (NATO) in 1949 had a dramatic effect on military strategy and Banak. Norwegian authorities and NATO regarded Finnmark as a tripwire. It was to be sacrificed and used to delay attacking forces during a Soviet invasion. The airfield was closed in 1952, but the runway remained, with a short section of an unmaintained wooden runway and otherwise consisting of a grass strip. It was occasionally used by small aircraft.

Re-establishment

Interest from military leaders for an airport at Banak returned in 1955. For the air force the main concern was that they could not reach the easternmost parts of Norway from Bodø Main Air Station. This resulted in several Soviet infringements of Norwegian air space. Alternative locations were considered, such as Kautokeino Municipality, where a radar had been built. NATO supported a reconstruction of Banak, partially due to an increased focus on flanking maneuver strategies, and also to serve as a part of the nuclear program. NATO was ready to provide funding in 1957, but the Norwegian authorities wanted to delay its construction, citing lack of personnel to man the station and that it would not be usable in times of war. The government decided in 1957 to not allow nuclear warheads to be stored in Norway during peacetime, thus eliminating NATO's strategic need for Banak. The airport was therefore removed from the investment program.

By 1959 the United States was concerned that the militarization of the Kola Peninsula would become the prime point of a Soviet attack on North America. A new discussion about location arose, with Alta and Kautokeino as the main alternatives. Banak was estimated to cost 4.9 million Norwegian krone (NOK), NOK 2.8 million less than Alta; it had better instrument landing capabilities and weather conditions; it allowed for a longer runway. The main advantage of Alta was that it would be better suited for civilian traffic. The government and Parliament approved construction of Banak in 1959 on condition that it receive NATO funding. Construction was estimated at NOK 8.9 million, which would include a 2,000-meter (6,600 ft) runway, but lack of funding meant the airport would not meet all of NATO's air base standards. The project was approved by NATO on 1 June 1960 and by Parliament on 5 August.

Construction was carried out simultaneously at Banak, Alta Airport and Kirkenes Airport in Høybuktmoen, which combined would give Finnmark three primary airports. All three airports opened on 4 May 1963, while Tromsø Airport opened the following year. Services were at first operated by Scandinavian Airlines System (SAS). At first the airline used 56-passenger Convair CV-440 Metropolitan aircraft, which flew flights south to Oslo in combination with flights to Alta and Kirkenes—from 1964 also to Tromsø.