CSA Czech Orders Eight Fairchild Dornier 728JETS

The Czech Republic's largest airline has ordered eight Fairchild Dornier 728JETs to open new routes and replace ATR-42 turboprops.

The eight-aircraft deal is valued at $230 million, though four will be under operating leases from GE Capital Aviation Services, which last year ordered 50 firm 728JETs with options for 100 more. The manufacturer will provide the remaining four aircraft.

Deliveries of the first three aircraft are planned for 2003, then three in 2004, one in 2005, and the last in 2006. The contract allows CSA Czech to convert the last two 70-seat 728JETs to 90-seat 928JETs.

"The 728JET will help us expand Prague as a hub, and also will help us to develop the SkyTeam Alliance, which CSA recently joined," said Miroslav Kula, president and CEO of CSA Czech Airlines.

Fairchild Dornier also announced orders for five of the smaller 328JETs in deals valued at $97 million.

Grupo InvestBlue in Madrid will take one 328JET in corporate configuration, and two additional 328JET corporate conversions will go to undisclosed customers.

Dean Rush, head of Fairchild Dornier's business aviation unit, said the corporate 328JETs differ from the Envoy 3 business aircraft by being convertible to corporate shuttle or airline configuration.

Additionally, Air Namibia has ordered two 328JET airliners, which are scheduled for delivery later this year.

Fairchild Dornier comes to Paris 14 months after its $1.2 billion buyout by a teaming of New York investment firm Clayton, Dubilier & Rice and Germany' Allianz Capital Partners.

Fairchild Dornier Chairman (and CD&R principal) Chuck Pieper told Show News that Fairchild Dornier is ahead of where he had hoped it to be by this point, and optimism remains high despite the worldwide economic downturn.

The company said it is hiring "three engineers per day," and expects to appoint a new CFO on July 1. Internally, Fairchild Dornier is taking a hard look at its processes and procedures, to make the most of its investors' confidence.

"People thought you could go into this kind of thing with a little bit of cash and see how things go. We put all the money in at the beginning so we wouldn't be at the mercy of the capital markets," Pieper said.

"CD&R and Allianz are committed to fully fund development of the company through 2005, and we're confident that there is a place in the market for us. There is not a campaign in the marketplace for which we are not a serious contender."