This article from NYTimes.com has been sent to you by psa188@juno.com. /-------------------- advertisement -----------------------\ Presenting the reloadable Starbucks Card. The Starbucks Card is reloadable from $5 - $500. Fill it up. Use it. Use it. Then, fill it up again. https://www.starbucks.com/shop/reload.asp?ci=672 \----------------------------------------------------------/ Jet Builder Announces Bankruptcy in Germany April 3, 2002 By PETRA KAPPL FRANKFURT, April 2 - Fairchild Dornier, the No. 3 builder of regional and business jets and the heir to two venerable aviation names, filed for bankruptcy protection from creditors today, saying it had run out of cash. The company, owned by the German insurer Allianz (news/quote) Capital Part ners and the American investment firm Clayton Dubilier & Rice, has been trying for months to line up a strategic partner to help it bring to market a 70-seat jet it has been developing since 1998. But only in the last few weeks has the company said publicly that it was in talks with possible partners to shore up its finances. The talks failed to yield a deal in time to forestall the bankrupt cy filing, which was forced on the company by solvency requirements in German law. If Fairchild collapses, it will leave the regional jet business to just two manufacturers, Bombardier of Canada and Embraer (news/quote) of Brazil. The fourth major entrant, BAE Systems (news/quote) of Britain, said last fall that it would exit the market. German newspapers reported that Boeing (news/quote) had been among those talking to Fairchild; Boeing told Bloomberg News that it would not comment. Hours after Fairchild's filing was officially received in a district court in Weilheim, the German economics ministry said it would help keep Fairchild in operation to avoid job losses. It offered no specifics. The company's main operations, with 3,600 workers, are based at Oberpfaffenhofen, Bavaria, near Munich, reflecting its descent from Dornier Luftfahrt, a German airplane builder bought by Fairchild in 1996. The company has 700 workers in the United States, mainly in San Antonio. It has not yet decided whether to file for Chapter 11 protection in the United States, the company's managing director, Thomas Brandt, said at a news conference today. Fairchild Dornier, whose sales have lagged far behind the two industry leaders, ran into trouble by underestimating the cost of developing the new jet, the 728JET, analysts said. The company said it had 125 firm orders for the new jet and would press on with development despite the court filing. The prototype is scheduled to make its first flight in August. Fairchild's only current production model is the 32-seat 328JET. Dornier and Republic Aviation, an American predecessor of Fairchild, built warplanes for opposing sides in World War II, planes that met in combat over Europe. http://www.nytimes.com/2002/04/03/business/worldbusiness/03JETS.html?ex=1018846272&ei=1&en=8d4f1ff6e72485a3 HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@nytimes.com or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@nytimes.com. Copyright 2002 The New York Times Company