Diamond Aircraft Restructures; Suspends D-Jet Again

 - February 26, 2013, 3:52 PM
For at least the second time in its history, the Diamond D-Jet program has been suspended due to lack of funding. In addition, London, Ontario-based DIamond Aircraft has laid off all of its approximately 450 employees as it restructures.

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.

In November 2011, Dubai-based Medrar Financial Group announced that it had agreed to purchase a majority interest in Diamond Aircraft (the Canadian operation, not Austria-based Diamond Aircraft Industries). At the time, Medrar CEO Jamil Marmarchi said, “Medrar will ensure the company’s capital needs are met and Diamond continues to lead the industry with emphasis on enhancing the D-Jet market status.”

Last year, Diamond Aircraft delivered 156 airplanes worth $53.5 million, according to GAMA. In 2011, Diamond Aircraft delivered 185 airplanes worth $73.1 million. The Diamond release cited “continuing low piston aircraft sales, especially in the North American market, and the significant burden of its cost-intensive D-Jet development program” for its latest action.

In March 2011, Diamond suspended the D-Jet program and temporarily laid off 213 employees while it sought further funding from the Canadian government. In November 2006, Airline Transport Professionals ordered 20 D-Jets and signed an agreement to provide training for D-Jet buyers.