Diamond Aircraft Industries
Encyclopedia
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
-based manufacturer of general aviation aircraft and motor gliders, which also has a large manufacturing facility in London, Ontario
London, Ontario
London is a city in Southwestern Ontario, Canada, situated along the Quebec City – Windsor Corridor. The city has a population of 352,395, and the metropolitan area has a population of 457,720, according to the 2006 Canadian census; the metro population in 2009 was estimated at 489,274. The city...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
. The company is majority owned by Medrar Financial Group of Dubai
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...
, United Arab Emirates
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...
.
The company produces a range of light aircraft
Light aircraft
A light aircraft is an aircraft that has a maximum gross take-off weight of or less.Many aircraft used commercially for freight, sightseeing, photography and scheduled flights are light aircraft.Examples of light aircraft include:...
and is actively engaged in the development of a single-engined jet aircraft, the Diamond D-Jet
Diamond D-Jet
The Diamond D-JET is a composite, five-seat, single-engine jet aircraft produced by Diamond Aircraft Industries. The aircraft is undergoing flight testing...
.
1980s
The company was founded as Hoffmann Flugzeugbau by Wolf Hoffmann in FriesachFriesach
Friesach is a historic town in the Sankt Veit an der Glan district of Carinthia, Austria. First mentioned in a 860 deed, it is known as the oldest town in Carinthia.-Location:...
, Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
, in 1981, to produce the H36
Diamond HK36 Super Dimona
The Diamond HK36 Super Dimona is an extensive family of Austrian low-wing, T-tailed, two-seat motor gliders that were designed by Wolf Hoffmann and currently produced by Diamond Aircraft Industries.-Design and development:...
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
Vienna
Vienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...
, Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
. In 1987 the company moved its factory to Wiener Neustadt
Wiener Neustadt
-Main sights:* The Late-Romanesque Dom, consecrated in 1279 and cathedral from 1469 to 1785. The choir and transept, in Gothic style, are from the 14th century. In the late 15th century 12 statues of the Apostles were added in the apse, while the bust of Cardinal Melchior Klesl is attributed to...
, Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
. 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
Diamond DA20
The Diamond DA20 is a two-seat tricycle gear general aviation aircraft designed for flight training. In addition to its role as a civil and military training aircraft, it is also used for personal flying by pilot-owners.-Development:...
, the company's first production general aviation
General aviation
General aviation is one of the two categories of civil aviation. It refers to all flights other than military and scheduled airline and regular cargo flights, both private and commercial. General aviation flights range from gliders and powered parachutes to large, non-scheduled cargo jet flights...
aircraft.
1990s
In 1992, to supply the North American market more directly, the company opened a second manufacturing facility in London, OntarioLondon, Ontario
London is a city in Southwestern Ontario, Canada, situated along the Quebec City – Windsor Corridor. The city has a population of 352,395, and the metropolitan area has a population of 457,720, according to the 2006 Canadian census; the metro population in 2009 was estimated at 489,274. The city...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
. 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
Diamond DA20
The Diamond DA20 is a two-seat tricycle gear general aviation aircraft designed for flight training. In addition to its role as a civil and military training aircraft, it is also used for personal flying by pilot-owners.-Development:...
model was delivered in 1995. It received the Flight
Flight International
Flight International is a global aerospace weekly publication produced in the UK. Founded in 1909, it is the world's oldest continuously published aviation news magazine...
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
Wiener Neustadt East Airport
Wiener Neustadt East Airport is an airport serving Wiener Neustadt, a city in the Austrian state of Lower Austria....
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-JetDiamond D-Jet
The Diamond D-JET is a composite, five-seat, single-engine jet aircraft produced by Diamond Aircraft Industries. The aircraft is undergoing flight testing...
. In 2004 the company opened its new 100000 sq ft (9,290.3 m²) composites facility in Austria. In 2005 the company announced a joint venture to produce the DA-40 light aircraft in China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
.
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 OntarioGovernment of Ontario
The Government of Ontario refers to the provincial government of the province of Ontario, Canada. Its powers and structure are set out in the Constitution Act, 1867....
. The Ontario government investment was contingent on Diamond also securing an additional $35M from the Government of Canada
Government of Canada
The Government of Canada, formally Her Majesty's Government, is the system whereby the federation of Canada is administered by a common authority; in Canadian English, the term can mean either the collective set of institutions or specifically the Queen-in-Council...
. 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
Conservative Party of Canada
The Conservative Party of Canada , is a political party in Canada which was formed by the merger of the Canadian Alliance and the Progressive Conservative Party of Canada in 2003. It is positioned on the right of the Canadian political spectrum...
Member of Parliament
Member of Parliament
A Member of Parliament is a representative of the voters to a :parliament. In many countries with bicameral parliaments, the term applies specifically to members of the lower house, as upper houses often have a different title, such as senate, and thus also have different titles for its members,...
Ed Holder
Ed Holder
Edwin A. Holder is a Canadian politician, who was elected to represent the electoral district of London West in the 2008 Canadian federal election. He is a member of the Conservative Party.-Electoral record:...
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
Vero Beach, Florida
Vero Beach is a city in Indian River County, Florida, USA. According to the U.S. Census Bureau's 2006 estimates, the city had a population of 16,939. It is the county seat of Indian River County...
to work on the Piper Altaire jet. Media reports also indicated that Bombardier Aerospace
Bombardier Aerospace
Bombardier Aerospace is a division of Bombardier Inc. and is the third-largest airplane manufacturer in the world. It is headquartered in Dorval, Quebec, Canada.- History :...
may have made offers to 85 workers to work on the Learjet 85
Learjet 85
-External links:* * * *...
in Wichita, Kansas
Wichita, Kansas
Wichita is the largest city in the U.S. state of Kansas.As of the 2010 census, the city population was 382,368. Located in south-central Kansas on the Arkansas River, Wichita is the county seat of Sedgwick County and the principal city of the Wichita metropolitan area...
. 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
London Free Press
The London Free Press is a daily newspaper based in London, Ontario, Canada.The London Free Press began as the Canadian Free Press, founded by William Sutherland in 1847. It first began printing as a weekly newspaper in 1849. In 1852, it was purchased for $500 by Josiah Blackburn, who renamed it...
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
Tony Clement
Tony Peter Clement, PC, MP is a Canadian federal politician, President of the Treasury Board, Minister for the Federal Economic Initiative for Northern Ontario and member of the Conservative Party of Canada....
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
University of Toronto
The University of Toronto is a public research university in Toronto, Ontario, Canada, situated on the grounds that surround Queen's Park. It was founded by royal charter in 1827 as King's College, the first institution of higher learning in Upper Canada...
Rotman School of Management
Rotman School of Management
The Joseph L. Rotman School of Management commonly known as Rotman School of Management is the University of Toronto's business school, located in St. George Street in Downtown Toronto. The school, named after Joseph L...
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 the company had been sold to Medrar Financial Group, an investment company based in Dubai
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...
, for an undisclosed amount. The move will provide continued production of the company's piston-engine line and also allow development of the the D-Jet project to continue.
Aircraft
- Diamond DA20Diamond DA20The Diamond DA20 is a two-seat tricycle gear general aviation aircraft designed for flight training. In addition to its role as a civil and military training aircraft, it is also used for personal flying by pilot-owners.-Development:...
- Diamond DV20
- Diamond DA36 E-Star
- Diamond DA40 Star
- Diamond DA42 TwinStar
- Diamond DA50Diamond DA50-External links:******...
- Diamond HK36 Dimona
- Diamond D-JetDiamond D-JetThe Diamond D-JET is a composite, five-seat, single-engine jet aircraft produced by Diamond Aircraft Industries. The aircraft is undergoing flight testing...