Fairchild Aerospace Finalizes Strategic Alliance with Israel Aircraft Industries For Major Role On 428JET Regional Jet

Business Wire, Sept 30, 1999

PARIS--(BUSINESS WIRE)--Sept. 30, 1999--

Fairchild Aerospace Corporation's Dornier Luftfahrt unit and Israel Aircraft Industries Ltd. have signed an agreement for IAI to design and fabricate the fuselage and perform final structural assembly on the 44-seat 428JET regional jet program.

The contract has a potential value of more than $600 million.

This follows an earlier agreement, signed in June, that made IAI responsible for system engineering and integration, flight testing and certification support on the 428JET program. That contract is valued at $80 million.

"Green" aircraft assembled at IAI's Commercial Aircraft Group at Ben Gurion International Airport will be flown to Fairchild's Oberpfaffenhofen site for final customization (interior and option installation), painting and acceptance and delivery to customers. The 428JET program office will also be located at the Oberpfaffenhofen facility.

According to Fairchild Aerospace President Jim Robinson, "This alliance with Israel Aircraft -- a world-class, innovative aerospace leader -- will allow us to bring the 428JET to market a year earlier than originally planned. As with our 32-seat 328JET, there is strong customer demand for this aircraft, and together they will provide operators with significant cost efficiencies and operational benefits as a family of aircraft."

He said Fairchild's relationship with IAI on the 428JET is a strategy that "enables us to expand our product line simultaneously into the 44-seat category while not disturbing the 328JET program."

IAI President and CEO Moshe Keret said, "We are extremely pleased in our expanded role with Fairchild Aerospace on this major program. In addition to our engineering, integration and certification tasks, which were previously announced, IAI is fully committed to manufacturing, in part, and assembling, in full, a high quality, cost effective 428JET 'green' aircraft."

Fairchild Aerospace launched the 428JET program in 1998 and has firm orders and options for 95 units, with deliveries beginning in the spring of 2003. Both the 328JET and 428JET provide more room per passenger than any other regional jet.

Fairchild Aerospace Corporation is a leading manufacturer of jet and turboprop aircraft for the airline, corporate and government markets and provides a wide range of sales, support, production and engineering services for the aviation industry. In addition to its headquarters in San Antonio, Texas, and facilities in Oberpfaffenhofen, Germany, Fairchild Aerospace has offices in Washington D.C. and other locations worldwide.