Fairchild Dornier Says Bombardier in Talks

Fairchild Dornier said Bombardier Inc., the No. 1 builder of regional planes, is holding “intensive talks” to take over production of the insolvent aircraft maker’s planned 728 jet.

Another potential partner is still interested in the 728, said Peter Kellner, a Fairchild Dornier spokesman, although Fairchild Dornier would “prefer to cooperate with Bombardier.” Kellner wouldn’t name the other potential partner. Boeing Co., the world’s biggest plane maker, has been named in news reports as a possible buyer.

Fairchild filed for protection from creditors April 2 after running out of cash and racking up debt of $670 million. The plane maker, owned by New York investment firm Clayton Dubilier & Rice Inc. and German insurer Allianz, has been seeking a partner to help fund the 70-seat 728’s development.