Fairchild Dornier's China Strategy

Even though every regional aircraft manufacturer in the world seems to be after the same thing, Fairchild Dornier still maintains its ambition to become a catalyst in China's regional air transport explosion. Right now expansion plans have stalled on all fronts as the company waits for the thorny issue of local import taxes on new aircraft to be sorted out-not to mention AVIC II's all-important impending decision on which international partner it will select for future airliner development, due next month.

Fairchild Dornier already has aircraft in service in China, but leading 328JET operator Hainan Airlines has had its expansion plans rudely interrupted by the import taxes that have halted deliveries of the 21 aircraft still on order. No one knows when this situation is going to change, or what the reasons behind the official go-slow are. There may well be some connection between the "disfavor" that foreign producers have fallen into and the coming launch of China's own regional jet programs.

Whatever the case, Fairchild Dornier is optimistic that it will have a role to play in China's aviation future, and business development VP Barry Ecclestone says his company's proposal to offer license-production of the 528JET (or perhaps another type from its jet family) in China still stands.

Fairchild Dornier already has a contract with AVIC II to supply upper fuselage/wing sections for the 328JET and is looking to expand that work in the near future. The possible production of entire aircraft would then be the next phase, but Fairchild Dornier first has to wait and see which way AVIC II's own plans will go, when the expected decision on the new regional airliners is made in March.

By Robert Hewson