Air Transport World

Fairchild Dornier continues string of setbacks. (Regional News).(Brief Article)

The bad news continued for Fairchild Dornier, which fieldfor insolvency April 2. A major customer withdrew its order for 728s, another customer is reviewing its decision to purchase 328s and a group of former workers in the US are trying to force the company into bankruptcy to protect their rights to severance pay.

Shortly after Fairchild Dornier declared its financial problems, GE Capital Aviation Services cancelled its order for 50 728s, representing nearly half of the firm order book for the new 70-seat aircraft. Ironically, the cancellation occurred as FD secured final approval for a $90 million loan that it said would enable it to continue operations while it is being restructured. …

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