PHOENIX, Ariz. - M7 Aerospace has acquired the asset of former Fairchild Dornier subsidiaries to develop a company aimed at providing support for Fairchild Metros, Dornier 328 turboprops and the Fairchild Dornier 328JET.

The company acquired three former Fairchild subsidiaries - Merlin Express, an operation that supported Fairchild Dornier's military Metro program; Gen-Aero, a repair station; and Metro Support Services - at a bankruptcy auction last December. In February it acquired the assets of Dornier Aviation - North America (DANA), also through a bankruptcy auction.

These acquisitions included the Federal Aviation Administration (FAA) type certificate for the Metro and Merlin series of aircraft, as well as the production facilities for the 328JET wing. M7 is based in the former Fairchild Dornier facilities in San Antonio, Texas.

The purpose of the new company is to support the Merlin/Metro program, 328 turboprop and 328JET, according to CEO Harold J.M. Williams, who served as Fairchild Aircraft president and CEO from 1995 to 1997.

Support for the 328s, 328JETs, Merlins and Metros includes spares, training and engineering and field support. The Gen-Aero repair station will cover repair support for those aircraft as well as other regional jets and regional airline equipment.

The four subsidiaries have been merged into three business units within M7, with DANA merged with Metro Support Services and renamed Material Support.

Williams told C/R News that the core business is supporting the Metros, with "750 out there" worldwide. However, the target markets are all the 328 turboprops, 328JETs and government logistics program for the military.

M7 is also looking at initiatives within the manufacturing and aircraft support arena, using the current Fairchild operation as "a launch platform," Williams said. "We have a substantial manufacturing capability. At one time [Fairchild] was producing ten Metros a month. That manufacturing capacity is still there, as well as for the 328JET wing." He added that they are looking at the future needs of the market, "addressing those markets with careful study and focus."

Williams said while M7 is still fairly small at this time, with annual revenues of roughly $32 million to $33 million, it is "a financially healthy small company." It is well capitalized, financed through JPMorgan Chase and 4M Investments of Houston, Texas. Its founder and current chairman is Ted B. Miller Jr., founder of both Crown Castle International and 4M Investments.

>>Contact: Mike Potts, tel: 210-820-8737; e-mail: mikepotts@m7aero.com<<