Diamond Aircraft to lay off 180
Diamond Aircraft’s London, Ontario, facility has issued temporary lay-off (furlough) notices to 180 of its 684 employees, effective Jan. 12.
The temporary lay-offs are primarily the result of 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 DA40s 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, and the twin-engine Lycoming powered DA42 L360 four-seater. It also is developing and certifying the D-Jet, a single-engine personal light jet.
January 12, 2009