Here is an article which I think best sums up the impact the political situation in Germany is having upon FD.
BERLIN, April 2 (Reuters) - The German government, stung by the collapse of building group Philipp Holzmann last month, said on Tuesday it may help planemaker Fairchild Dornier remain in operation after the firm filed for insolvency.
But in an apparent display of party politics ahead of a September general election, Economics Minister Werner Mueller said it was up to the Bavarian regional government, led by conservative challenger Edmund Stoiber, to offer help first.
"The ball is now in the court of the Bavarian government," Mueller told reporters. He added however that the federal government would not "completely turn its back on" efforts to help Fairchild Dornier.
Fairchild Dornier employs around 3,600 people in Germany and 700 in the United States. It was forced to file for insolvency after failing to find a strategic partner to develop new aircraft.
High-profile company collapses have been a headache this year for both Chancellor Gerhard Schroeder and Stoiber, the Bavarian prime minister picked by the conservatives to challenge Schroeder in the September 22 election.
The chancellor helped rescue Holzmann during a previous crisis in 1999, and the company's failure last month tarnished his image as a saviour of jobs.
Stoiber meanwhile stands to suffer a blow if the Munich-based over-indebted Kirch media group, currently in rescue talks with creditors and shareholders, were to declare insolvency.
It was Stoiber's government that helped bankroll Kirch's expansion via Bayerische Landesbank, half-owned by the state of Bavaria.
But both the federal and Bavarian governments have been involved in funding Fairchild Dornier.
The company was formed in 1996 when Fairchild Aircraft of San Antonio, Texas bought Germany's Dornier Luftfahrt. It was bought by Clayton, Dubilier & Rice, a $3.5 billion private equity fund, and Allianz Capital Partners ALVG.DE in 2000.
A consortium including Germany's HVB Group HVMG.DE and Bayerische Landesbank BLGGg.MU half-owned by Bavaria, also provided $800 million worth of financing at the time, 80 percent of it secured by loan guarantees from the German government and the state of Bavaria.
The firm, which has an order book worth $11.7 billion, said that it plans to continue with the profitable parts of its business, set up a strategic partnership, retain the key parts of its workforce and secure fresh funding.
A spokeswoman for the economics ministry said the federal government had a "significant" three-digit million euro exposure to the company. "We hope Fairchild Dornier can be kept in operation," she said.
(Remember half of the 11.7 BN in orders is Firm)