Dubai firm flies in for Diamond Aircraft: The cash-strapped London company is snapped up.

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.

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