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Aviation History
2002
2002 - 0788.PDF
HEADLINES BUSINESS PAUL LEWIS / WASHINGTON DC Fairchild Dornier seeks new backing as orders tumble Two month flight test delay for 728 prototype threatens certification schedule Fairchild Dornier is again seeking new financial backing to overcome a cash crunch as expected airline orders fail to materialise. Further compounding the manufacturer's problems is a delay in the start of 728 flight testing that threatens to impact the 70-85-seat aircraft's certification and delivery schedule. The announcement comes only weeks after Fairchild Dornier's share holders and a consortium of German banks provisionally agreed to pump an additional $870 million into the company. It would appear that this is tied to a new strategic partner being enlisted to help Fairchild Dornier further develop and sell its 728/928 family. Fairchild Dornier is looking for a partner to bring "financial capital and a wide range of product, tech nology and marketing capabilities". The company was rescued from the financial brink in 1999 by Clayton, Dubilier & Rice (CDR) and Allianz Capital, which took a 70% and 23% holding respectively, but neither was viewed as long-term investors. "It has always been known that CDR's objective is to build up the company and sell it," observes a senior company execu tive. "When talking to the airlines and trying to sell aircraft, they want to have a better understanding of our ownership, so why not expedite bringing on a strategic partner?" Majors Air France, British Airways and Qantas have postponed deci sions on a new 70-110-seater, but prospects should improve by 2003. A Fairchild Dornier source claims there are up to a dozen potential partners. Boeing declines to com ment on reports that it is a poten tial suitor, while Bombardier Aero space's president Robert Brown was reported as stating it could poten tially be a good fit. The Canadian company later reversed its position and said it was not interested. Meanwhile, Fairchild Dornier faces at least a two month delay in its 728 flight test schedule. The air craft is due to roll out on 21 March and was expected to fly in May, but this has been pushed back to at least July. The prototype's first flight is scheduled for "this summer". The company denies that the delay is related to the search for cash, but development delays. "Secondary structure and wire har nesses have taken longer to design and install due to many small changes that needed to be incorpo rated on the first prototype...we have added an additional flight test aircraft to increase our capability and flexibility," it says. The manufacturer hopes to par tially offset the delay by expanding use of its iron bird. However, certifi cation of the baseline 728-100, set for May 2003, has slipped. Fairchild Dornier says this is "forecast for summer-autumn [third quarter] 2003, essentially compatible with the requirements of our customers. Type certification of the [longer range] 728-200 is on schedule as planned before the end of 2003". SEE AIR TRANSPORT P12 AND FEATURE P32 • The feature went to press before details in this news story emerged BUSINESS & GENERAL AVIATION Cash shortage delays BA609 work The troubled Bell/Agusta BA609 civil tiltrotor programme faces fur ther delays as a shortage of cash forces the joint venture to put the brakes on development efforts. The partners had hoped to get the first test tiltrotor airborne by June, but this is looking increasingly unlikely. Industry sources say budget changes mean the funds are no longer available to maintain the BA609's latest schedule. As recently as February Bell/Agusta said the tiltrotor would fly by the end of the second quarter, but cautioned the schedule would be "event driven". This has led to suggestions that the programme is close to being shelved, but sources say work will continue at a much reduced pace. Budget changes mean that the current schduled cannot be maintained Bell Helicopter was not available for comment. Moves to slow the BA609 follow the recent creation by parent company Textron of an Aviation Sector headed by former Cessna chairman Russ Meyer in a bid to recapture market share lost to Eurocopter. The BA609's success hinges largely on the delayed V-22 Osprey military tiltrotor. DEFENCE Dassault drops South Koreans over F-X scandal Dassault is attempting to dis tance itself from a corruption scandal surrounding its bid to win South Korea's F-X fighter competition with the Rafale. The French manufacturer says it has broken ties with local trading company Comet International, which had been one of its agents in the campaign. The move follows the arrest by military police of South Korean air force Col Cho Joo- hyong on suspicion of receiving an unauthorised 11 million won ($8,400) payment from Comet. A second air force officer, who worked with Cho on the F-X evaluation team, has also been arrested. Cho is known to have made an anonymous appearance on local television earlier this month, during which he claimed senior defence min istry officials put pressure on the team to adjust their inter pretation of technical evaluation results to favour Boeing's F-15K instead of the Rafale. Investigators are mean while trying to determine whether Comet was also behind the leak to the South Korean media of documents detailing the technical evalua tion results, which awarded the highest marks to the Rafale. Though Dassault could theoretically be disqualified from the bidding if it were proven to have acted improp erly, the investigation is unlikely to be completed until after Seoul selects an F-X win ner. The decision is expected next month. Boeing is tipped to win the order with the F-15K because of the USA's close defence ties with South Korea. Also competing are the Eurofighter Typhoon and Sukhoi Su-35. 6 19-25 MARCH 2002 FLIGHT INTERNATIONAL www.flightinternational.com
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