However, amid intense competition in the international market for regional jets, Fairchild Dornier were unable to attain enough sales of the type to maintain production after 2002.

Support for existing aircraft continues, and a prospective revival of the programme has been mooted on multiple occasions, but no solid production-related activity has ensued.

However, some prospective customers reported a negative perception of noise and reliability issues with turboprop engines, which motivated the company to study the manufacture of a turbofan-based variant, initially referred to as the 328-300.

[4] According to Fairchild Dornier president Jim Robinson, such an arrangement had been examined early on in the 328's development process but had been rejected by then-parent company Daimler-Benz Aerospace AG (DASA).

[5] By November 1996, according to Dornier vice-president for sales Andrew Jampoler, a feasibility study for the programme had been completed and the company was close to selecting an engine; options considered included the General Electric CFE738, Pratt & Whitney Canada PW306, and the LF507-1F, as well as a de-rated LF507-2 powerplant.

[3] Conservative projections anticipated the jet-powered airliner to consume roughly 30% more fuel than its turboprop-powered predecessor, although it was believed that this difference would be decreased by further refinements.

Even following the acquisition, considerable pressure remained on the programme's finances, extending through to its suppliers, leading to reorganisations and premature withdrawals from involvement.

[15] According to Andrew Doyle of the aerospace periodical Flight International, the reenginging programme was being well-received, referring to it as "a new lease of life".

[6] During October 1997, as work was underway on building the first prototype, Dornier announced several improvements to the aircraft, including a higher cruise speed of 400kt that was achieved via a minor reduction of the trailing edge flaps.

Furthermore, Dornier had planned to conduct a comprehensive upgrade of the existing model, involving an avionics overhaul and possible re-winging to use a new swept wing, around the early 2000s.

[22][23] However, a consequence of intense competition within the regional airliner market was multiple manufacturers making losses and terminating their programmes; Fairchild-Dornier were no exception to the industry-wide pressure.

[24][25] The limited commercial performance of the 328JET had placed Fairchild-Dornier into a precarious financial position, the company ultimately being unable to continue the development of further models.

[1][26] Shortly thereafter, Sierra Nevada's owner, Turkish-American engineer Fatih Ozmen, established a private corporation named Özjet Havacılık Teknolojileri A.Ş.

Stating that they believe demand in the sub 40-seat market is still present for the type, Sierra Nevada Corporation and 328 Support Services GmbH began to seek out for other opportunities in order to revive the aircraft, hoping to follow through by the end of 2017 or early 2018.

[citation needed] Pratt & Whitney Canada owns and operates one Dornier 328JET, registry number C-GCPW, between its Montreal and Toronto facilities as an employee shuttle.