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