Air Finance Journal Copying and distributing are prohibited without permission of the publisher

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.

Tags: Fairchild Dornier  |  Airlines  |  airline  |  Aircraft value  |  Boeing

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 partner.

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 earlier...


Featured deal

AWAS | 04-14 | A/c Sec Loan | 3xA320 13/05/2014
Latest Deal Status Financial close
Overall Arrangers Helaba Bank
Assets A320
Law firm Clifford Chance, Norton Rose

Latest Poll

Do you think export credit should be more expensive?






Upcoming Events