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Posts: 1877
Joined: Sun Jan 13, 2002 6:53 am

Fairchild Dornier Situation Update

Fri Jun 07, 2002 10:12 pm

728 Program:
This are looking on track for Bombardier to assume control of the 728 program not only are 3600 German jobs on the line here but additionally 12,000 supplier jobs from which 50% of their total business is based largely on the success of the Dornier 728. July 1st ends the 90 day insolvency and BO will allow for the opening of insolvency proceedings and proceed to then break the 728 program from FD.

328 Program:
We are officially cut of from funding from GMBH as of July 1st, however, we are in a position to remain solvent for a short period of time until the potential partner(s) will decide with respect what part of the 328 program they will decide to assume control over. There is a business case for the program as a whole, 328 support/production/spares/engineering or the alternate less desirable business case which will be support services only. In the later case the 328 would no longer be produced. I was not very optimistic yesterday but feel that if the potential partners can make a quick decision we will survive but not in the current location. Moving seems immanent.

Overall if both best case scenario's happen, both projects remain in production, there is a strong possibility that FD products could see even more widespread production than FD could have ever hoped to accomplish. With the prospect of new ownership, greater marketing and financing deals could potentially allow customers who previously could not obtain FD financing could quite possibly now see more affordable financing prospects with the new ownership. Bombardier has demonstrated superior product support for years now something we have tried and failed to do for more than four years.

The potential 328 partners are in the works but are not being announced for obvious reasons. They all include current regional or corporate aircraft manufactures.

Posts: 5539
Joined: Sat May 28, 2005 1:11 am

RE: Fairchild Dornier Situation Update

Fri Jun 07, 2002 10:17 pm

Have they given the SA employees any indication that their jobs may be saved? Or will they close the Texas facility?
Or is it just too early to tell?

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