Regionals Update: Midwest express settles with Fairchild, buys more 328JETs

 - May 27, 2008, 6:05 AM

In an unexpected turn of events, Midwest Express and Fairchild Dornier have resolved their dispute over the cancellation of the 428JET program, leading to a follow-on order for four 32-seat 328JETs and options for 10 of the high-wing regional jets for the Milwaukee-based carrier’s regional subsidiary, Skyway Airlines. The order, valued at some $177 million, calls for delivery of one airplane next month and the remaining three next December.

Having so far taken possession of eight of the Pratt & Whitney Canada PW306B-powered jets, Midwest Express signed as the launch customer for the program in 1998, when it placed a firm order for five 328JETs along with options for five of the 32-seaters and five more 44-seat 428JETs. But soon after Midwest Express exercised all its options, Fairchild Dornier canceled the 44-seater’s development program, sparking a dispute that led to the airline’s decision in April to sign a memorandum of understanding (MOU) with Embraer for 20 ERJ-140s.