SOURCE: AFI
In 1996, Fairchild Dornier and Hindustan Aeronautics Limited (HAL) were in discussions to transfer wing production for the Dornier 328 turboprop from Germany to India. HAL was also invited to bid for the fuselage shell production, competing with Italy’s Aermacchi, as the existing contract with South Korea’s Daewoo neared its end. Fairchild Dornier viewed India as a potential market, and relocating production could have aligned with broader sales opportunities. However, the deal ultimately never materialized.
Had this agreement been finalized, it could have significantly enhanced HAL’s manufacturing capabilities, providing it with access to a larger and more sophisticated platform than the Do-228. This, in turn, would have opened doors for HAL to contribute to India’s domestic and regional aviation market. The 328 could have been a stepping stone for India to meet growing civil aviation demands, while also strengthening the armed forces’ transport and reconnaissance capabilities with a more versatile aircraft.
The Dornier 328, being larger and more capable than HAL’s existing Do-228, would have allowed India to address a broader range of operational needs, particularly in regional aviation and defense. The turboprop market in the 1990s was expanding globally, and having a production facility in India could have positioned HAL at the forefront of the region’s growing aerospace market. The deal could have also contributed to technology transfer and knowledge-sharing between India and Germany, enabling HAL to develop and manufacture more advanced aircraft.
This opportunity would have given HAL access to a platform that could have diversified its portfolio, offering a product suited for both military and commercial aviation. Although HAL continues to manufacture the smaller Do-228, the Dornier 328 project could have allowed India to develop a larger civil aviation manufacturing ecosystem, addressing the need for regional connectivity and the country’s long-term aviation growth.