The resulting firm, named Fairchild-Dornier, manufactured the 328 family in Oberpfaffenhofen, Germany, conducted sales from San Antonio, Texas, United States, and supported the product line from both locations.

[3] In December 1988, the 328 project was relaunched following the granting of shareholder approval after negotiations between the Dornier family and Daimler Benz.

[1][4] As the result of a six-month evaluation, a selection of powerplants deemed to be appropriate for the 328 was formed, these being the General Electric CT7-9D, the Garrett TPE-341-21, and the Pratt & Whitney Canada PW119A.

While the Garrett engine was viewed by Deutsche Aerospace as being technically superior, Pratt & Whitney's powerplant was more advanced in development, thus was chosen.

[19] In June 1995, Deutsche Aerospace and Daewoo Heavy Industries were reportedly conducting talks on the establishment of a second 328 assembly line in South Korea for the Asian market.

[20] In 1995, both Fokker and Deutsche Aerospace suffered substantial financial difficulties, which ultimately led to the end of the latter's ambitions to dominate the European regional aircraft market.

[13] During the late 1990s, Fairchild Dornier struggled to find both capital and strategic partners to support the project, and the company entered bankruptcy in April 2002.

[28][24] Shortly thereafter, Sierra Nevada's owner, Turkish-American engineer Fatih Ozmen established a private corporation named Özjet Havacılık Teknolojileri A.Ş.

First flight was anticipated in 2019, but Turkey abandoned the program in October 2017, after facing increasing costs and no longer being confident of market demand forecasts.

Believing in the under 40-seat market, Sierra Nevada Corporation and 328 Support Services GmbH are searching for other means to revive the aircraft, hoping to follow through by the end of 2017 or early 2018.

[32][needs update] Existing aircraft can be sourced by 328 Support Services and converted for civil transport, military operations, medical evacuation, or freighter or utility missions for $7–9 million, including zero time turboprops.

[43] To develop the D328eco, Deutsche Aircraft collaborated with a number of suppliers within the global aviation sector, including Pratt & Whitney Canada, Garmin, Liebherr-Aerospace Toulouse, Aciturri, and Heggemann.

The Dornier 328 is a twin-turboprop engined, regional aircraft, principally designed for short-haul passenger operators; Deutsche Aerospace often promoted the type as being a "third-generation airliner".

[7] The fuselage of 328 allows for a comfortable three-abreast, airline-style seating arrangement to be used, as well as a dense, four-abreast configuration to accommodate greater passenger numbers, of which it is able to carry a maximum of 27.

[47][4] The straightforward construction techniques of the Dornier 228 were also reused for the 328, despite making increased use of composite materials in areas such as the rear fuselage and empennage.

[49] Noise-absorbent material is located across the fuselage, while the cabin wall is hung from isolator brackets to reduce vibration and noise transference.

[46][47][50] In 2005, the Australian Maritime Safety Authority (AMSA) awarded a contract to AeroRescue to provide long-range search and rescue capability around Australia.

These aircraft were equipped with a comprehensive electronic sensor suite by Aerodata AG in Germany including; Israel Aerospace Industries ELTA EL/M 2022A Radar, FSI Star SAFire III Forward Looking Infra Red, Direction Finder and an ARGON ST Infra Red/Ultra Violet scanner.

These are progressively being upgraded with an in-flight-opening cargo door to allow dispatch of larger items, up to 20-person life rafts, and boat-dewatering pumps for open-water rescues.