Clayton, Dubilier & Rice and Allianz Capital Partners
Provides Money for Development of Regional Jets

Asian Aerospace 2000 -- Fairchild Aerospace arrives in Singapore with financial firepower to back up the ambitious plans of a new company with an old name. At the end of December, an investor group headed by Clayton, Dubilier & Rice and Allianz Capital Partners acquired the company for $1.2 billion, providing money to support development of Fairchild's family of regional jets.

At year-end, Fairchild Aerospace was in a unique position: having delivered 16 328JET 32-seat airliners to customers, it had an $8 billion backlog including 400 orders and options, most of them for types which had not yet flown. In 1999, the company claims to have won one-third of all orders for jets under 100 seats. The infusion of cash will help translate those orders into reality.

Hainan Airlines, the first carrier in China with regional jets, has ordered 19 328JET aircraft. Two aircraft are already in service with the airline, and the type is flying with operators in the US, Europe and Africa.

Under an agreement signed in September, the 44-seat 428JET is being developed and produced in collaboration with Israel Aircraft Industries, which will complete the engineering design and set up an assembly line at Tel Aviv. The 428JET is to enter service in 2002.

Critical design review of the 728JET, the first member of a family designed to cover the regional jet market from 50-105 seats, started at Oberpfaffenhofen in November, following a landmark order from Lufthansa for 60 firm orders plus an equal number of options. Production of the prototype is due to start next year, with first flight in 2001 and first deliveries in 2002.