Background During the early 1990s, German manufacturer Dornier had launched their
turboprop-powered
Dornier 328 onto the market. However, some prospective customers reported a negative perception of noise and reliability issues with
turboprop engines, which motivated the company to study the manufacture of a
turbofan-based variant, initially referred to as the
328-300. Market research had indicated that, provided that both the economics and performance of such an aircraft were competitive, this would have greater desirability amongst the market. Relatively few design modifications between the two airliners were necessary. By November 1996, according to Dornier vice-president for sales Andrew Jampoler, a feasibility study for the programme had been completed and the company was close to selecting an engine; options considered included the
General Electric CFE738,
Pratt & Whitney Canada PW306, and the
LF507-1F, as well as a
de-rated LF507-2 powerplant. The new entity chose to continue with the programme, albeit rebranding the type as the
328JET. Even following the acquisition, considerable pressure remained on the programme's finances, extending through to its suppliers, leading to reorganisations and premature withdrawals from involvement. By the end of 1997, Dornier-Fairchild had cut its annual costs by $58 million, and anticipated exceeding its $115 million cost-cutting target within two years. In spite of internal pressures, senior figures remained upbeat about the prospects for the 328JET and the regional jet market. During June 1997, the first sales of the type were announced, French regional operator
Proteus Airlines emerged as the launch customer as a result of a $70 million order for six aircraft, alongside orders from other customers. It was hoped that the 328JET would have market appeal with those who found the 328 to not meet their preferences, in particular those customers based in the
Middle East. By the end of the year, Dornier had reportedly secured 17 firm orders and 15 options, while the company claimed it was negotiating two major orders for up to 180 aircraft with the aim of closing over the following three months. According to Andrew Doyle of the aerospace periodical
Flight International, the reenginging programme was being well-received, referring to it as "a new lease of life". By March 1997, reports emerged that Dornier was set to start converting the second 328 prototype into the first turbofan-powered 328JET prototype. On 6 December 1997, the 328JET prototype rolled out at Dornier's facility outside
Oberpfaffenhofen, Germany, after which ground-based testing commenced immediately. On 20 January 1998, the prototype conducted its
maiden flight; it was piloted by Meinhardt Feuersenger, hitherto chief test pilot of the turboprop 328, and Peter Weger. This initial flight over the
Bavarian
Alps attained a peak altitude of and lasted for almost 2 hours. The flight test programme would involve a total of four prototypes. Early on the 328JET programme, Dornier were already considering options for a stretched version of the aircraft, originally referred to as the
328-700. During 1998, following the first flight of the type, Fairchild-Dornier opted to pursue development of the stretched
428JET, a 44-seat version of the 328JET. Work proceeded to the point several customers had signed letters of intent to purchase the upcoming aircraft. Furthermore, Dornier had planned to conduct a comprehensive upgrade of the existing model, involving an avionics overhaul and possible re-winging to use a new
swept wing, around the early 2000s. However, a consequence of intense competition within the regional airliner market was multiple manufacturers making losses and terminating their programmes; Fairchild-Dornier were no exception to the industry-wide pressure. The limited commercial performance of the 328JET had placed Fairchild-Dornier into a precarious financial position, the company ultimately being unable to continue the development of further models. As such, the 328JET became the last commercial aircraft to be produced by the former Dornier business prior to being rendered
insolvent during 2002.
Post-Dornier developments Following Dornier's insolvency,
AvCraft Aviation of
Virginia acquired the 328 program during March 2003. This acquisition included rights to the design itself, a total of 18 328JETs in various stages of assembly, and the development work on the 428JET. After the sale of these airplanes, AvCraft negotiated with its suppliers to resume production due to low profit expectations for its other projects. During 2004, the first of AvCraft's 328JET was delivered. 328JET
air ambulance During 2005, AvCraft itself filed for
bankruptcy. However, this entity did not resume manufacturing of the type; instead, it opted to provide maintenance, repair and overhaul services to the 330 in-service fleet. During February 2015, US engineering company
Sierra Nevada Corporation acquired 328 Support Services GmbH. In June 2015, the Turkish government launched the Turkish
TR328 and
TRJ328 regional aircraft project, a modernized 328/328JET, with either turboprops or jets. It could be followed by the larger TR628/TRJ-628. At one point, the first flight of a Turkish-built aircraft was anticipated to occur during 2019.