Dornier downed as orders bomb

FAIRCHILD Dornier, the German plane maker best known for its Second World War bomber, has filed for insolvency, just months before its new regional passenger jet was scheduled to make its maiden flight.

The collapse of the company, co-owned by US investment fund Clayton, Dubilier & Rice and Germany's Allianz Capital, follows a downturn in orders since the 11 September terrorist attacks on the US. Chief executive Lou Harrington said last month that his company was 'pursuing discussions with prospective strategic partners'. With sales in 2001 of $687m (£491m), the company has an order book of e11.7bn (£7.2bn).

The product of the merger of Germany's Dornier and US aircraft maker Fairchild in 1996, the group employs 4,000 people in Germany and Texas.