INTERLAKEN, Switzerland - Fairchild Dornier is moving head with its 728JET, for which production began formally last week with fabrication of initial components by Belgian sub-contractor SABCA, which is to produce cockpit and rear-fuselage structures.

This first cutting of metal involved part of the cockpit canopy frame for the prototype aircraft.

This month work is scheduled to begin on fabrication of the 728's wing, which along with the empennage is being developed by Spanish contractor CASA, a part of EADS. Manufacture of the wing center box should begin in January, followed by outer wing sections in February, ahead of planned wing assembly about three months later and delivery in August 2001.

Flight trials are projected to begin around April 2002, with certification and first deliveries planned for 2003.

The manufacturer says that it does not need to decide for a year on a possible 528JET that could constitute a third family member. The size will be driven by the market; it could be bigger or smaller than the nominal 55-passenger capacity, they said.

Customer revenue flights with the 34 examples of the 328JET entering service since August 1999 has now passed the 300,000 mark. Despatch reliability is put at 99.12%, which officials say underlines the value of having derived the design from an existing turboprop model.

In just over 12 months of operations and some 580 flights, initial European customer Tyrolean Jet Service has experienced no delays or cancellations. The high-time 328JET, which is operated by China's Hainan Airlines, has completed more than 2,000 departures.