Doomsday for D-Jet? Diamond Aircraft Suspends Jet Program

Isabel Goyer

Tuesday, February 26, 2013 at 07:39 AM ET

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Diamond D-Jet

Key Takeaways:

Diamond Aircraft Industries Canada has temporarily laid off the majority of its Canadian workforce as part of an internal restructuring.
Piston single production will continue as build-to-order, while the D-Jet program is suspended pending the securing of additional funding.
The restructuring and layoffs are attributed to continuing low piston aircraft sales, particularly in North America, and the significant burden of the D-JET development program.
A core group of employees remains to fulfill orders, provide parts and services, and offer ongoing support for existing aircraft models.

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On Monday evening Diamond Aircraft Industries Canada President and CEO Peter Maurer made the startling announcement that the company was laying off “the majority” of its Canadian workforce. The move, it said, was temporary pending what it called “restructuring.” In a phone call late Tuesday, Maurer said that the production of piston singles would continue, though it would be a build-to-order operation.The company had retained just over 50 of its approximately 200 employees.

Maurer also said that while Diamond was suspending the D-Jet program “pending the securing of additional funding,” it was actively pursuing that funding. He gave no timetable for restarting the jet program or for the re-hiring of the laid-off workers. Operations at Diamond Aircraft Industries’ sister Austrian company are not affected, according to the release.