Norman De Bono goes one-on-one with Peter Maurer, chief executive of Diamond Aircraft
Q: Medrar Financial Group has bought Diamond Aircraft. Will the founding family retain any ownership?
A: "Yes. It has not been sold lock, stock and barrel. We see it more as a partnership. They are talking a majority interest in it, and Diamond's current shareholders still have a large share."
Q: Why sell?
A: "It is able to put together financing for the D-Jet but they have ambitions to do a lot more, to grow products here and bring capital. They have a long-term vision, a long-term investment, and that works well for us."
Q: When will you start hiring back workers?
A: "It will be difficult. We have to recruit people with the right skill set so we will not be in a position to ramp up as quickly as we would like," after many of its 200 laid off workers found work elsewhere.
Q: It has been a difficult time recently for Diamond, you must be relieved.
A: "I am very relieved, we have had a difficult couple of years, it is still a down market, but compared to our competitors, we are doing OK."
Q: You are showing off the D-Jet this week at the Dubai Air Show, how has it been received?
A: "It has been received very well, the response is terrific. We now have orders for about 200, worth $350 million.
Q&A: With Aircraft industry observers:
Q: Is there a chance Diamond Aircraft could shut down here, and move production?
A: There is a chance, but it's unlikely, says industry analysts. There are very few cases of manufacturers being uprooted and shifted to the Middle East nation. Instead, they will embrace the technology and expertise in aviation to help develop the industry there, and integrate the London plant into a global supply chain.
Q: Why would a Dubai business want to buy a London aircraft manufacturer?
A: It is all about diversifying its economy away from oil and into other areas, including transportation. They want to become an aviation, aerospace centre and will use Diamond technology to get there. The London location also offers access to the U.S. market.
Q: What would happen to Diamond was not purchased?
A: They may have been able to line up financing elsewhere, but if not, they may have not had enough capital to keep the D-Jet program alive, and the plant's future could have been in jeopardy.
Q: Is it true Dubai does not have the infrastructure and workforce to move an aircraft manufacturing plant there.
A: Yes, that is true today. But it also has a track record of attracting workers and building infrastructure for whatever it needs, so who knows that the future may hold. It is said that 90 % of Dubai's residents are foreign workers.
Q: Is there any aviation and aerospace industry now in Dubai.
A: Yes, but it is small. They have manufacturers making parts for some of the major aircraft manufacturers.
http://www.lfpress.com
http://www.lfpress.com
London-based Diamond Aircraft Canada has been sold to Medrar Financial Group -- an asset management firm operating out of Dubai.
The sale, announced Monday morning in the Middle East, involves the D-Jet program.
A spokesperson for Diamond said she couldn't comment on the impact the sale might have on jobs here in London.
Diamond's London workforce currently stands at 220.
Jamil Marmarchi, CEO of Medrar, cited the D-Jet in announcing the deal.
"The current sate of the economy highlights the need and potential for aircrafts like the D-Jet," he said.
Christian Dries, chair of Diamond Group, said Diamond looks forward to "working seamlessly together to develop the Diamond brand and enhance its value."
Diamond Aircraft played a controversial role in the recent federal election when a request for a $35-million government loan was delayed and 200 workers laid off.
http://www.lfpress.com
http://www.lfpress.com
[Dubai, November 14, 2011] MEDRAR FINANClAL GROUP and DIAMOND AIRCRAFT HOLDINGS have announced today that an agreement has been signed for the acquisition of a majority interest of Diamond Aircraft Holdings, Canada. In addition to a range of Diamond Aircraft's gasoline powered piston aircrafts, the agreement also includes the revolutionary D-JET program.
The D-JET, an unprecedented concept that combines low acquisition and operating costs with practical performance and a high level of luxury and comfort, is designed for simplicity of operation, safety and affordability.
"The current state of the economy highlights the need and potential for aircrafts like the D-JET" said Jamil Marmarchi, CEO of Medrar. "People will always continue to travel and in the short to medium distance range, the D-JET offers a luxurious and affordable, yet socially and environmentally responsible alternative way to fly privately. Diamond has successfully demonstrated its ability to leverage its designs and technology to create entire product lines for the piston airplane market - we are excited not only by the D-JET but also by the derivative models to follow."
Christian Dries, Chairman of the Diamond Group commented, "Diamond has grown tremendously over the last decade and it will greatly strengthen our worldwide position to have a capable partner supporting our future growth and our existing business. We are pleased that Medrar has demonstrated their recognition of this potential with their significant commitment. We look forward to working seamlessly together to develop the Diamond brand and enhance its value."
"We are equally bullish about the future potential of the piston aircraft, especially in support of professional flight training, where we expect international pilot demands to drive a sustainable market for training aircrafts in the long term and maintain our leadership position," continued Marmarchi. "As a specialized asset management and investment firm based in Dubai, Medrar will ensure the company's capital needs are met and Diamond continues to lead the industry with emphasis on enhancing the D-JET market status."
Diamond Aircraft will be exhibiting a range of their planes including a mock up of the new and exciting D-JET at the Dubai Airshow 2011 at the Airport Expo from 13th - 17th November.
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About Diamond Aircraft:
Diamond Aircraft is a leading manufacturer of modern composite aircrafts, with the only complete range of modern technology certified aircrafts for personal and training use. Since 1981, Diamond has pioneered the application of certified composite aircraft structures, innovative propulsion systems and avionics technologies. Diamond has delivered over 4,000 single and twin engine piston aircraft to customers worldwide. The D-JET is the first and leading program for a new class of entry level Jets. Diamond operates production facilities in Canada, Austria and China.
About Medrar Financial:
Medrar Financial Group operating out of Dubai, UAE is an asset management and advisory firm led and managed by a group of investment bankers, fund managers and entrepreneurs. Medrar builds value through collaboration between its global network of financial and business partners, identifying unique investment opportunities and developing businesses from inception to fruition through the hiring of experienced management teams and applying efficient capital structures. Medrar's commitment to any business or investment ensures their partners the highest standards of corporate governance, financial analysis, business planning and execution. Medrar by its true definition is to grow and prosper by giving onto others.
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