Canadian Government Denies Diamond Dollars

Pia Bergqvist

Wednesday, May 18, 2011 at 08:53 PM ET

Verified

Photo Courtesy of Diamond Aircraft Courtesy of Diamond Aircraft

Key Takeaways:

The new Conservative Canadian government denied Diamond Aircraft's $35 million loan request, which was intended to support the D-Jet program and recall laid-off workers.
While Diamond Aircraft has secured $55 million from the Province of Ontario and private investors, the D-Jet program's certification and initial deliveries are contingent on securing the full $90 million required.
Despite the funding setback, Diamond Aircraft's owner reaffirmed commitment to its Canadian plant, with no plans to shut down operations, emphasizing the D-Jet program's importance to the company's other propeller product lines.

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The new Conservative Canadian government has denied a $35 million loan request from Diamond Aircraft, possibly affecting the D-Jet program and the Canadian segment of Diamond Aircraft. The Liberal party had made it clear that, if elected, it would be in support of the request after Diamond laid off 213 of its 380 workers at its London, Ontario, factory on March 28.

Peter Maurer, president of Diamond Aircraft told Flying, “It’s disappointing for sure. The funding would have enabled us to recall our employees immediately, but it’s not our only avenue. It’s just one possible door that got shut.”