Plans by a former Lufthansa executive to set up German regional carrier Modern Air with Fairchild Dornier 328JETs have been scrapped after a key financing partner pulled out of the project.
Modern Air managing director Gernot Huebl says the airline's order for 10 328JETs, for which deposits had been made, is being cancelled. The carrier had intended to launch regional services from Cologne/Bonn airport to cities in France, Italy and the UK, flying as a Team Lufthansa franchise partner (Flight International, 29 September - 5 October 1999).
"We are closing down. We had a financing partner and he did not fulfil his commitment," says Huebl, declining to comment further. Last year, Huebl said the project was being backed by a "tremendously wealthy" Hamburg-based German businessman.
Airline sources say a study of Modern Air's plans by Lufthansa raised questions over its economic viability, leading to a decision by the German flag-carrier not to allow the start-up to fly as part of Team Lufthansa.
Lufthansa declines to comment. Fairchild has removed the Modern Air commitments from its 328JET firm orderbook, leaving a firm backlog of 67 with 34 aircraft delivered.
Source: Flight International
