Fairchild Dornier rescue effort fails

19th October 2004, Comments 0 comments

19 October 2004, MUNICH - The fate of regional jet company Fairchild Dornier appeared to be sealed Tuesday when insolvency officials said last-ditch efforts to find an investor to rescue the company had failed. Stephan Ammann of the Munich law office acting as insolvency administrator, said that talks had been held "with all the big companies" in seeking to rescue Dornier Fairchild. But potential investors had shied away from the high costs which would have been involved in completing the new 728Jet progra

19 October 2004

MUNICH - The fate of regional jet company Fairchild Dornier appeared to be sealed Tuesday when insolvency officials said last-ditch efforts to find an investor to rescue the company had failed.

Stephan Ammann of the Munich law office acting as insolvency administrator, said that talks had been held "with all the big companies" in seeking to rescue Dornier Fairchild.

But potential investors had shied away from the high costs which would have been involved in completing the new 728Jet programme, he said. Those costs were estimated at EUR 800 million.

The regional jet company based in Oberpfaffenhofen, outside of Munich, filed for bankruptcy in 2002 after suffering a strong downturn in sales in the crisis which had hit the aviation sector.

Since then, court-appointed bankruptcy administrators had been selling off some of the company's assets, including the 328-regional- plane programme to the U.S. company AvCraft for some USD 100 million (EUR 80 million).

DPA

Subject: German news

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