HISTORY
Diamond Aircraft Industries
is an Austrian-based manufacturer of
general aviation aircraft and motor
gliders, which also has a large
manufacturing facility in London,
Ontario, Canada. The Canadian
operating arm of the company,
Diamond Aircraft Holdings, Canada,
is majority owned by Medrar
Financial Group of Dubai, United
Arab Emirates.
The
company produces a range of light
aircraft and is actively engaged in
the development of a single-engined
jet aircraft, the Diamond D-Jet.
1980s
The
company was founded as Hoffmann
Flugzeugbau by Wolf Hoffmann in
Friesach, Austria, in 1981, to
produce the H36 all-composite motor
glider. Becoming Hoffman Aircraft
Limited in 1985, and a subsidiary of
Simmering-Graz-Pauker AG, the
company moved its headquarters to
Vienna, Austria. In 1987 the company
moved its factory to Wiener
Neustadt, Austria. In 1991 the
parent company was renamed HOAC AG
and purchased by the Dries Family.
In the same year, the company
started development of the HK36R a
Rotax 912 powered motorglider, which
was the precursor to the DV20
Katana, the company's first
production general aviation
aircraft.
1990s
In
1992, to supply the North American
market more directly, the company
opened a second manufacturing
facility in London, Ontario, Canada.
The Canadian operation used the name
Dimona Aircraft
until it was changed to Diamond
Aircraft in 1996, while the parent
company remained HOAC.
The
Austrian-built DV20 Katana was
certified in 1993, and the first
Canadian-built DA20 model was
delivered in 1995. It received the
Flight
magazine's Eagle Award, for best
light aircraft in the same year.
1997 marked the delivery of the
500th DV20 and the introduction of
the DA20-C1, which had improved
performance and load capabilities.
The DA20-C1 Eclipse (an improved
version of the DA20-C1) also entered
production.
In
1998 the parent company was renamed
Diamond Aircraft GmbH
to better fit the North American
operation's naming. The company also
purchased the Wiener Neustadt East
Airport in that same year. The DA40,
a four-place IFR aircraft was
certified in 2000, followed by the
twin diesel engine DA42 in 2004.
2000s
In
2003 the company announced its light
jet program, the Diamond D-Jet. In
2004 the company opened its new
100,000 sq ft (9,300 m2)
composites facility in Austria. In
2005 the company announced a joint
venture to produce the DA-40 light
aircraft in China.
The
company informed employees by mail
in December 2008 that due to the
economic situation they would be
laying off 100 workers from the
company's Austrian facility in
Wiener Neustadt. At that time the
facility employed 700 of the
company's 2100 worldwide workforce.
2010s
In
March 2011 the president and CEO of
Diamond Aircraft Canada, Peter
Maurer, indicated that his company's
future was in doubt and relied on
getting the D-Jet to market, as
piston sales remained slow since the
recession. To get the D-Jet into
production the company found $20M in
private investment, plus the
commitment of an additional $35M
from the Government of Ontario. The
Ontario government investment was
contingent on Diamond also securing
an additional $35M from the
Government of Canada. If both
federal and provincial loans were
provided then, combined with funds
already provided, the total
provincial and federal government
investment would have been $100M.
Maurer indicated "If we don’t get
the funding from the federal
government, it puts us in a
difficult situation. If the D-JET,
for example, in a worse case
scenario, were not to continue it
would have a negative impact on the
rest of the company’s operations.
[The debts are] at a level that
would be very difficult to satisfy
out of piston sales,” he said. “I’ll
let you do the extrapolation."
By the
end of March 2011, with a federal
election in full swing and no sign
of the requested federal government
loans coming, the company laid-off
213 London-based employees, mostly
on the D-Jet program. Company CEO
Peter Maurer stated, "We are hopeful
that the government will give this
matter urgent attention and provide
the requested assistance".
In
early April 2011 Diamond indicated
that it needed C$8M from the federal
government over the next four months
as an interim measure. Local
Conservative Party of Canada
Member of
Parliament
Ed Holder
stated that Diamond owner Christian
Dries had told him that Dries would
close the London plant and make the
announcement just before the federal
election, if support was not
forthcoming. Dries issued a denial
of the conversation, but Holder
insisted that was correct. Holder
suggested that Diamond look to the
province or the city for the money
instead.
In
mid-April Diamond CEO Peter Maurer
indicated that other companies had
been hiring their laid-off workers,
especially engineers. Piper Aircraft
announced that as many as 25
engineers may be moving to Vero
Beach, Florida to work on the Piper
Altaire jet. Media reports also
indicated that Bombardier Aerospace
may have made offers to 85 workers
to work on the Learjet 85 in
Wichita, Kansas. Maurer said that
the loss of laid-off workers will
hurt a restart of the D-Jet program
should government funding be
approved. He described the situation
as "dire".
At the
end of April 2011 Maurer issued a
public appeal in the London Free
Press for the C$35M loan from the
Government of Canada, indicating
that if it was not forthcoming that
the company might cease operations.
Maurer also indicated that the
hiring of his laid-off staff,
particularly engineers, by his
competition might spell the end of
the London-based operation anyway,
saying "With the loss of this team,
the building of a replacement team
would add cost and time that the
program and company may not
survive." By mid-May the company had
hired back 11 engineers to prevent
other companies picking them up and
was hoping to have a decision on the
federal loan request after a new
cabinet is sworn in.
Following the 2 May 2011 federal
election, which returned a majority
Conservative government, Industry
Minister Tony Clement announced that
the government had rejected
Diamond's loan request. Clement
said, "We are stewards of taxpayers
dollars and we have risked, quite
rightly, $20 million in taxpayer
dollars to date, and it is not
judicious to up that by another $35
million. We hope the company Diamond
continues to be part of the scene in
London. We do not wish for its
demise." Diamond President Peter
Maurer indicated that the company
was still working on private
investment options but that would
take more time and that in the
meantime they were continuing to
lose their laid-off staff. He also
stated "We have been very clear that
without this loan, the D-Jet program
is at risk here in London. Diamond’s
future is at risk here." Maurer
indicated that when upcoming loan
repayments are due that the company
cannot meet those obligations out of
propeller aircraft sales and without
an infusion of capital cannot get
the D-Jet to market.
In
analyzing the declining of the loan,
Joseph D'Cruz of the University of
Toronto
Rotman
School of Management indicated that
in his opinion the government made
the right decision in turning
Diamond down. He said, "It's such a
high risk, nobody in their right
mind would invest...That particular
market for that aircraft is a
relatively small market and it's
unproven....Could this jet go ahead
without government assistance? The
answer is a definite 'no,' because
it's not viable without the federal
government."
In
late May 2011 Maurer said that he
had always considered the Canadian
government loans a "long shot" and
that the company was looking at
other sources of funding to bring
the D-Jet to market, including
potential Chinese investment. On 14
June 2011 the company announced that
it secured private financing from an
unnamed source and started recalling
its workers, indicating that it
would build an extra test aircraft
and resume flight testing. Flight
testing started again in early
September 2011.
On 13
November 2011 Diamond announced that
a majority share of Diamond Aircraft
Holdings, Canada, the Canadian
operating arm of the company, had
been sold to Medrar Financial Group,
an investment company based in
Dubai, for an undisclosed amount.
The move was intended to provide
continued production of the
company's piston-engine line and
also allow development of the D-Jet
project to continue. The investment,
along with gradually improving
economic conditions, seemed to
increase customer confidence as the
company registered a 33% increase in
sales in 2011 over the previous
year. Diamond delivered 185 aircraft
in 2011, compared to 139 in 2010.
In
March 2012 company CEO Christian
Dries indicated that the market
focus of the company had been
changed by the recession of 2008-10
and that the company now derives
two-thirds of its revenue from
military and government contracts,
primarily for manned and unmanned
surveillance versions of its DA42.
In April 2012 the company announced
the Diamond Hero, an autonomous
operation helicopter
unmanned
aerial vehicle .
Source:
Wikipedia
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