About 25 Percent Of London, Ontario Workforce Laid Off

The latest casualty of the worldwide economic crisis is Diamond Aircraft, which announced Monday it will furlough roughly 25 percent of its current production workforce in London, Ontario, effective immediately.

"Reflecting an industry wide decrease in demand, Diamond is forced to adjust its propeller aircraft production workforce to align with current inventory and sales levels," stated a company release. "Accordingly, Diamond's London Ontario facility has issued temporary lay-off (furlough) notices to 180 of its 684 employees, effective January 12th, 2009."

Diamond tells ANN the temporary lay-offs stem primarily from a reduction of DA40 XLS production rates, to reflect the current industry wide low retail sales levels and to prevent the build-up of excessive inventories.

"As painful as this decision is, for our employees and our business partners, it is fiscally responsible and necessary for the long term health of our company." said Peter Maurer, President of Diamond Aircraft Industries. "On the positive side, although private customer retail sales are currently weak, fleet orders for the flight training market remain strong with stable demand for the DA20, over 50 DA40's on order for 2009 so far, and a growing order book for the Lycoming powered DA42 twin as well. With the near term introduction of the DA42 L360, and a reduction in new aircraft inventory levels over the next several months, we hope to recall our furloughed employees as soon as possible."

Diamond's London facility produces the single engine DA20 two-seater, the single engine Lycoming powered DA40 four seater, the twin-engine Lycoming powered DA42 L360 four-seater and is developing and certifying the D-Jet, a single engine personal light jet.

FMI: www.diamondaircraft.com