Bombardier is taking another look at Fairchild Dornier a month after the US/German regional aircraft manufacturer filed for bankruptcy protection.
The company has just over a month before $90 million in interim financing is exhausted and the court-appointed administrator has to decide between restructuring or declaring insolvency.
The move represents a volte-face for Bombardier after president Robert Brown ruled out acquiring Fairchild Dornier in March. "Since Mr Brown made his statement, Fairchild Dornier has filed for bankruptcy and that could change the picture for us," says Bombardier.
The company declines to comment on whether it is in discussions with German administrator Eberhard Braun, or which part of Fairchild Dornier it might be interested in. Analysts point out that Bombardier has previously acquired a number of businesses at bargain prices, including Canadair, de Havilland and Shorts.
Fairchild Dornier's businesses fall into four categories: the 728/928 regional jet programme, 328JET 32-seat regional jet production, aerostructures production for Airbus and maintenance and repair contracts.
The Airbus contract is its most attractive asset. However, observers suggest that there is also product synergy between Fairchild Dornier and Bombardier. Bombardier has no direct equivalent to Fairchild Dornier's 32-seat 328JET, while the CRJ700/900 are not seen as direct competitors to the larger five-abreast 728/928 family. The planned 928 is also close in size and design to Bombardier's shelved BRJ-X programme.
Analysts caution that high production costs in Germany and Bombardier's labour and trading problems, including a legal dispute in Germany over trains, could put Bombardier off. Without a major investor, Braun says the company will have to be broken up.
Meanwhile, development of the 728/928 and 328JET production continues: on 29 April German courts authorised the company to use $40 million stocks of 328 components to produce more aircraft.
Source: Flight International
