Due to public perception of noise and reliability issues with turboprops, Fairchild-Dornier developed the turbofan-based 328-300 or 328JET, of which 83 were sold. The 328JET utilized the same cabin arrangement as the 328. Fairchild-Dornier also began development of the stretched 428JET, a 44-seat version of the 328JET.
A 328JET of Cirrus Airlines, with a DHC Dash 8 in the background
The declining commercial success of the 328JET meant that Fairchild-Dornier was unable to finance the development of further models. The 328JET was therefore the last commercial aircraft to be produced by the former Dornier business before it became insolvent in 2002. Following Dornier's insolvency, AvCraft Aviation of Virginia acquired the rights to the 328 program in March 2003, including the 32-seat 328JET and 328 turboprop, 18 328JETs in various stages of assembly, and the development work on the 428JET. After the successful sale of these airplanes, AvCraft negotiated arrangements with suppliers to resume production. The first newly built 328JET was delivered in 2004. AvCraft also took on the production of these aircraft, due to low profit expectations for its other projects, until it filed for bankruptcy itself in 2005. The resulting firm was acquired by private equity investors and reformed as M7 Aerospace.
a Dornier 328J with its mid/aft fuselage and empennage replaced with advanced composite materials. The ACCA is a Lockheed Martin demonstrator to advance composite usage on next-generation tactical air mobility transports for the US Air Force Research Laboratory.
In August 2010 a total of 54 Dornier 328JET aircraft remain in airline service. The only operators with a fleet of more than five are Ultimate Jetcharters (based in Ohio at the Akron Canton Airport) with 10, Tianjin Airlines with 11 and Sun Air of Scandinavia with 9. Some 13 other airlines also operate smaller numbers of the type, including Avex Air of South Africa, which operates 2 Dornier 328Jets out of Oliver Tambo International Airport. A past airline operator in the U.S. was Skyway Airlines, a feeder airline for Midwest Airlines, which flew 12 328JET aircraft. Skyway and Midwest are no longer in existence. Atlantic Coast Airlines operated over 30 328JET aircraft as part of its Delta Connection service from 2000 until 2005 when Delta and Atlantic Coast terminated their agreement with the arrival of Airbus 319s into the rebranded Independence Air fleet.
On June 3, 2006, a PAC-Private Air Charters Fairchild Dornier 328JET overran runway 34R at Manassas Regional Airport and stopped on a road near the airport. None of the 8 passengers and crew were injured in the incident but the damage to the aircraft was substantial.