A virtually stagnant market for new commercial airplanes and a rapidly eroding capital base have convinced German airframe builder Fairchild Dornier to pursue a new “strategic” partnership with another large aerospace concern. “We are cash negative,” said company chairman Charles Pieper during a press briefing on the morning of Fairchild’s March 21 rollout of the 70- to 85-seat 728. “A strategic partner could help reduce costs, provide an addition to the capital structure, provide additional customer contacts and a human-resources complement. In short, it would make us more competitive in all aspects [of our business.]”
Pieper said Fairchild Dornier continues to hemorrhage roughly $50 million per month, and concluded that “we cannot predict the ultimate future of Fairchild Dornier.” He added that the money shortage has forced the company to redirect funds from its other programs–namely the Envoy 7 business jet and 95- to 110-seat 928–to the first flight of the 728.
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