Letter Sent To Customers, Vendors, Business Partners By CEO Peter Maurer

Diamond (Canada) CEO Peter Maurer has sent a letter to the company's customers, vendors, and business partners to say there are positive developments to report, but "it isn’t quite smooth sailing" following layoffs that occurred in February.

Maurer said that on the piston side of the business, "we achieved good results in the past several months, with fleet sales going to Australia, Jamaica, Poland, Turkey and Southeast Asia, in addition to the retail sales in North America. In support of the increasing overall activities, we were pleased to recall many of our furloughed employees.

"We have maintained our piston aircraft operations in London, Ontario, while making significant reductions to expenses. Unfortunately this also means that some traditional activities, including a factory presence at EAA AirVenture 2013, have been curtailed. While “Oshkosh” has been the place of many important announcements and introductions in Diamond’s history, the cost of exhibiting is very high and given the overall situation we think it is best to focus on our most urgent priorities. Our apologies to those Diamond faithful who planned to visit us in Wisconsin this year however, as always, we are only a phone call away and welcome any customer visits to our facilities in London, Ontario."

Maurer reminded those receiving the letter that only 895 worldwide total piston aircraft deliveries were reported by GAMA in 2012. "Diamond has been enjoying increasing overseas sales, especially of the Austro Engine diesel powered DA40, DA42, special mission aircraft and flight training simulators. With our Austrian colleagues enjoying a full order book for the diesel powered aircraft, we will only see a handful of these delivering to North America this year, however we plan on formally launching these fuel efficient technology leading aircraft in North America in 2014."

When it comes to the D-JET, Maurer said that "technically the aircraft is superb, but without adequate funding to finish the program, the D-JET development continues to be on hold. We are working on presenting, in the very near future, satisfactory solutions for all D-JET program stakeholders, regardless of the outcome of the financing efforts. We are most grateful for the support and encouragement from our business partners and customers alike."

Maurer said that the company is continuing to position its self for the future. "Our diversification of business activities is expected to provide improved stability for our operations and to better position our company to weather the cycles of our industry. Along these lines, Diamond, working closely with Clarity Aerial Sensing of Bozeman Montana, has been growing the special mission aircraft business in North America and we expect that this segment will generate continued opportunities."

He said he expects to be making some announcement regarding "exciting new business opportunities that leverage our expertise in composite aircraft design and construction," but did not give a timeframe for those announcements.

FMI: www.diamondair.com