Dornier Info

LearLove

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I got the today from Avweek


Aviation Daily: Boeing Steps Away From Buying Fairchild Dornier


By Jens Flottau/Aviation Daily

23-Apr-2002 11:39 AM U.S. EDT



Boeing is not going to invest in insolvent regional aircraft manufacturer Fairchild Dornier, according to Boeing Vice Chairman Harry Stonecipher and Boeing Commercial Airplane Group CEO Alan Mulally.


Stonecipher told The DAILY in Chicago that Boeing has studied the move but concluded that it would not go ahead with an investment.


Stonecipher said it is very difficult to make money in the regional aircraft business for three manufacturers -- Embraer, Bombardier and Fairchild Dornier. Stonecipher hinted at Boeing's unsuccessful investment in de Havilland and at its own existing poor-selling 100-seat program, the 717.


Mulally said, "We don't have any plans to go into the [regional] market at this time." Asked if Boeing would consider buying Fairchild, Mulally said, "No." He noted that there are many different customers in the regional market that Boeing doesn't currently serve.


CEO Phil Condit, however, was less concrete about Boeing's decision being final about FD. "At this point, we have not made any decisions about anybody," he said, talking to foreign journalists in Chicago. Last week, Condit stated that his company was very cautious in its approach to the regional market but did not entirely rule out stepping in anyway.


Fairchild Dornier has to find an investor in the next two months so it will not to run out of money and be dissolved. A group of three German banks has provided a $90 million credit facility to keep operations going for a three-month period. The early-April bank decision is expected to be the final loan.


Fairchild Dornier also has received notice that an import license for eight 328JETs to China is imminent. The proceeds could keep the company going a little longer.


Apart from Boeing, no other potential investor has surfaced in the past several weeks. EADS has continuously stated that it is not willing to re-enter the regional market.


Even if Fairchild Dornier finds an investor, the company will have to renegotiate all the contracts with 728/928 aircraft launch customers because of a potential ownership change following insolvency. Last week, GE Capital Aviation Services confirmed it has canceled its order for up to 150 FD aircraft
 
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