German plane maker goes bust

Small plane-maker Fairchild Dornier has filed for insolvency in a German court.

The Munich-based aviation firm, which employs about 4,000 people, builds short-haul jets seating up to 110 passengers and manufactures parts for Airbus.

The bankruptcy filing may clear the way for a takeover bid from US aviation giant Boeing, analysts have said.

Boeing is reportedly considering a $2bn bid for Fairchild Dornier.

Boeing stopped making small jets during the 1990s.

Fairchild Dornier's main competitors were Brazilian firm Embraer and Canadian plane maker Bombardier.

It is jointly owned by Alliance Capital, who hold 25%, and majority stakeholder Clayton, Dubilier & Rice.