Canada-based Diamond Aircraft has again suspended its single-engine D-Jet program and has temporarily laid off the majority of its workforce while it restructures. “Regrettably, we need to suspend activity on the D-Jet program, pending the securing of additional funding,” said Diamond president and CEO Peter Maurer in a press release issued yesterday.
Medrar Financial Group of Dubai and Diamond Aircraft Holdings of London, Ontario, signed an agreement yesterday at the Dubai Air Show for Medrar’s acquisition of a majority interest in Diamond. The agreement does not affect Diamond Aircraft Gmbh in Austria.
Medrar Financial Group of Dubai and Diamond Aircraft Holdings of Austria have signed an agreement for Medrar’s acquisition of a majority interest in Diamond, the companies announced today. The agreement includes Diamond’s piston airplanes as well as its under-development, single-turbine D-Jet.
Diamond Aircraft has secured an agreement for a fresh capital infusion that allowed the restart of its D-Jet program and restored the test aircraft to flight status. The Austrian-based aircraft manufacturer had suspended the single-engine jet program in March and laid off almost all employees working on the D-Jet at its London, Ontario facility after failing to obtain a new $36 million development loan from the Canadian government.
Diamond Aircraft appears to have secured new funding that will allow it to resume progress on the single-engine D-Jet program. The funding–“a significant investment”–is dedicated to the D-Jet, according to Diamond, and permits the company to recall furloughed engineers and technicians, resume flight testing and build the next test aircraft. This is subject, however, “to finalization of closing arrangements” for the funding.
Diamond Aircraft temporarily suspended its D-Jet single-engine jet program yesterday after a $35 million loan from the Canadian government failed to materialize. The company also laid off 213 employees associated with the program at its London, Ontario facility.
Diamond Aircraft CEO Christian Dries is focusing “more on strategy and specific programs,” following the appointment of Gerd Berchtold as CEO of the company’s Austria-based production and engineering division. Berchtold is responsible for design, production and customer support and reports to Dries, who is the shareholder of Diamond Aircraft.
For a year marked by a lackluster recovery in flight activity, tepid used aircraft sales and continued slow sales of new light and midsize jets, there was a surprising amount of activity in new aircraft programs.
Later this month, the 63rd annual NBAA meeting and convention opens at the Georgia World Congress Center in Atlanta. The NBAA Convention won't reappear in Atlanta for some time, as the next four shows are scheduled for Las Vegas (2011), Orlando (2012), Las Vegas (2013) and then again in Orlando (2014).
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