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Old before its time
01 November 2005
Bankruptcy meant that the Fairchild Dornier 328 Jet never really found a market, and with Delta parking aircraft, its value is unlikely to recover.
The past five years have been tough for owners of Fairchild
Dornier aircraft. Aircraft residual values always fall when a
programme ends and owners of 328 Jets have been concerned since
November 2001, when the company admitted that it was having
financial difficulties and tried to arrange a state loan. The
loan failed and, in March 2002, the manufacturer announced that
it was losing $50 million a month and desperate for a strategic
Boeing was spoken of as a possible partner and some Russian
investors were said to be interested. However, no deal closed
and Fairchild stopped building aircraft in 2002.
In March 2003 AvCraft signed a deal to restart production.
This looked like good news for 328 Jet owners. Fairchild's
administrator announced that it had sold all the remaining
white tails and lessors placed a few older aircraft.
Then it all started again. AvCraft filed for bankruptcy
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