An aircraft few people have ever heard of—which is hardly surprising, considering that it was intended to be produced by a manufacturer that is now almost forgotten, and that the aircraft itself never flew, not even on its maiden test flight.

But what exactly was Fairchild Dornier, and why are we discussing its 728 project? The answer is quite simple: had the project succeeded, the Fairchild Dornier 728 would probably today form the backbone of the short- to medium-haul fleets of almost every airline, precisely because it was, in many respects, an aircraft ahead of its time.

The German company Dornier is best known for two aircraft, the Do 228 and Do 328 turboprops, which operated—and continue to operate—primarily in European skies, although they never achieved the popularity enjoyed today by aircraft such as the ATR family or the Dash 8. The Dornier 228 is a small aircraft capable of carrying up to 19 passengers and has more commonly been used in cargo operations, while the Do 328 is a better-known turboprop configured for approximately 30 to 40 passengers.

When the Do 328 was introduced in the 1990s, it represented a revolution in the regional aircraft market. At the time, it competed with the Saab 340 and de Havilland Canada DHC-8-300, but offered a fully digital glass cockpit, a pressurised cabin allowing operations at higher altitudes, more passenger space, and simpler maintenance and crew training.

These advantages were recognised by major players in regional aviation, including US carrier Horizon Air, which placed what was then an extraordinary order for 60 aircraft. In Europe, the type was operated most extensively by Sun-Air of Scandinavia in British Airways colours, as well as by Flybe and SkyWork Airlines, among others.

However, despite a relatively positive response from airlines and a moderately strong number of orders, Dornier encountered financial difficulties. This is where the American company Fairchild entered the story. Until then, Fairchild had been best known for producing the A-10 Warthog military aircraft. In an attempt to save Dornier from almost certain financial collapse, the Fairchild Dornier consortium—FAD—was established.

Shortly afterwards, FAD announced a new aircraft model: the 328JET, based on the 328 platform but powered by jet engines. Compared with the conventional 328, the JET version offered higher speeds, higher operating altitudes, quieter operation and greater range. Following the immediate success of the 328JET, FAD decided to develop an entirely new regional jet, and the 728 project was born.

The 728 was intended to become a family of regional jet aircraft with seating capacities ranging from 50 to 120 passengers. It was designed to compete directly with Embraer’s E-Jet family and Bombardier’s Canadian-built CRJ regional jets, while allegedly offering better performance, greater passenger comfort and lower operating costs.

A total of six aircraft variants were planned:

• 528 – capacity of 55 to 65 passengers
• 728 – capacity of 70 to 85 passengers
• 928 – capacity of 95 to 110 passengers
• 1128 – capacity of 110 to 120 passengers
• Envoy 7 – a concept aircraft in a VIP business configuration, featuring wing improvements in the form of winglets and additional fuel tanks that would enable transatlantic flights. Additional Envoy 5 and Envoy 9 variants were also planned.
• Airborne Early Warning – a military version equipped with radar and infrared cameras, with a possible aerial tanker option.

All aircraft were to be based on the same platform and use common cockpits, with the aim of maximising commonality in crew training.

Compared with its principal competitors, the E-Jet and CRJ families, the 728 offered a more spacious cabin with a 3+2 seating configuration, similar to that now associated with the Airbus A220 family. The project also attracted support from engine manufacturers, with General Electric soon committing to the 728 through an engine supply agreement with FAD.

All of this impressed potential operators. Even before its first flight, the 728 had accumulated 125 firm orders and 164 options. Lufthansa CityLine was the launch customer, placing an order for 60 aircraft with options for an additional 60.

Lufthansa was closely involved in the aircraft’s development and insisted on the 3+2 seating configuration. It also encouraged FAD to limit the cabin width so that a sixth seat could not later be added to each row in a 3+3 arrangement. Such a high-density configuration would have allowed low-cost carriers to transport considerably more passengers using the same aircraft and potentially compete more aggressively with Lufthansa.

Lufthansa was soon joined by leasing company GECAS, which ordered 60 aircraft, while Czech carrier ČSA ordered an undisclosed number. In total, eight customers contributed to the 728’s initial order book.

However, as so often happens, good things did not last. Despite the large number of orders and the programme’s early success, Fairchild Dornier filed for insolvency shortly after the rollout of the 728. Lufthansa subsequently cancelled its order, followed by GECAS.

As a final attempt to save the programme, FAD presented the aircraft to low-cost carriers. They were not interested, however, because the 728 could not accommodate a high-density seating configuration. The order book quickly shrank to only around 30 aircraft, ultimately pushing Fairchild Dornier into bankruptcy.

Interestingly, the 728 never flew. Three prototypes were built, but only one was considered flight-ready. Following FAD’s bankruptcy, a new company—Fairchild Dornier Aeroindustries—was established to take over the 728 programme. However, this failed to restore the confidence of major customers such as Lufthansa, and without orders the company was unable to continue operating.

Why, then, did an aircraft that was expected to conquer European skies end in such an inglorious failure? There were two principal reasons, the first being the company’s poor financial management.

The second was that FAD was competing in an already saturated regional aircraft market containing numerous jet and turboprop products capable of meeting virtually every requirement of regional air transport.

In addition to the E-Jet family, which was already at a more advanced stage of development than the 728, the CRJ had been flying for years, and airlines preferred to rely on a proven product. The BAe 146 and Avro RJ families were also well established and retained a strong market position despite production ending in 2001.

Bombardier, in addition to its CRJ family, introduced the Dash 8 Q400 turboprop in 2001, while the Saab 340 and Saab 2000 were also widely used by airlines. ATR was already gaining market share with its ATR 72 and ATR 42 turboprops, which competed with the planned 728 and 528 variants.

Airbus introduced the A318 in 2001, directly competing with the proposed 928 and 1128. Airlines could also choose the similarly sized Boeing 717, which had entered service in 1999 and offered a direct replacement for the DC-9 and MD-80 fleets still widely operated, particularly by US airlines.

Finally, production of the Fokker 70 and Fokker 100 had ended only in 1997, meaning that some carriers—Austrian Airlines, for example—had renewed their fleets with Fokker aircraft only three or four years before the 728 was introduced.

In other words, Fairchild Dornier had jumped into a pool full of sharks. Airlines such as Lufthansa had enough alternatives from other manufacturers to avoid taking unnecessary risks and withdrew at the first sign of FAD’s financial instability. Ironically, the orders they cancelled might ultimately have saved the company.

Had Lufthansa lacked alternative options and had the FAD 728 been its only viable choice, events might have unfolded differently—probably in Fairchild Dornier’s favour.

As an epilogue to the story, Fairchild Dornier Aeroindustries eventually collapsed as well. The German government made no significant attempt to rescue the company, partly because FAD was no longer considered to possess a competitive product and partly because Germany was already actively involved in Airbus aircraft development.

The Do 328 and 328JET brands were eventually taken over by the new company Deutsche Aircraft, which today supports existing operators of both aircraft types. Deutsche Aircraft is also developing a redesigned version of the 328 known as the D328eco. The aircraft is intended to operate using sustainable aviation fuels and will feature major cockpit and performance improvements, including the ability to operate from unpaved runways.

Photo: Phillip Boeck; TAC 02 on the day of the auction

All three 728 prototypes, carrying the serial numbers TAC—Test Aircraft—01 to 03, remain preserved today.

TAC 01 is located at the German Aerospace Center, although without its wings. Dismantling and subsequently reinstalling the wings for transport would have been prohibitively expensive, so the decision was made to cut them permanently from the fuselage. TAC 01 was sold for €19,000. The aircraft was later used for experimental structural testing, after which all further use ceased.

TAC 02 is housed at the German Museum of Technology in Berlin, where it has been preserved and is available for public viewing, while TAC 03 is displayed at the Technik Museum Speyer.