Diamond Aircraft sales bounce back

Diamond Aircraft is bucking a global trend, with sales of its piston-powered aircraft climbing while the industry remains stalled.

Just-released sales figures show the aircraft maker, beside London International Airport, increased sales in 2011 by 33% over the previous year.

But the total still pales in comparison to Diamond's peak in 2007, chief executive Peter Maurer said.

"They are higher than 2010, but they are still low numbers. It is nothing to jump up and down about."

The London plant sold 187 planes last year, compared with 139 in 2010. In 2007, the company moved 473 planes.

Diamond's increase in sales comes at a time when the aviation industry globally is flat. The General Aviation Manufacturers Association, in its 2011 outlook report, said piston-aircraft sales across the U.S. dipped 1.5% last year, to 860.

At the end of 2011, global sales dropped 3.5%, to 1,865 units, it reported.

"We are trending in the right direction, and I am cautiously optimistic as we watch the market develop. We don't want to end up with a lot of inventory," Maurer said.

That is a common story across the region's manufacturing sector, where industries are experiencing a slow, steady improvement of their bottom lines, said Steve Glickman, director of business retention and growth at the London Economic Development Corp.

"Companies that are proactive and into continuous improvement are finding that business can be good. It's about finding niche markets and filling unmet needs. If manufacturers can do that, they can be in good shape.

Diamond recently delivered 12 two-seater aircraft to the Ecuadorian air force to be used for training. They're valued at about $200,000 each.

The U.S. air force has more than 50 Diamond two-seater aircraft it uses as trainers.

"It's a very safe aircraft, it has great flying characteristics. It is low cost, with a low fuel burn," Maurer said.

In November 2010, Medrar Financial Group in Dubai bought a majority interest in the London plant from the Dries family in Austria, who maintain a minority interest in the local plant.

Diamond employs about 240 workers.

In the spring of 2010, the company laid off about half its 400 workers after the federal government refused its request for a $35-million loan to aid in developing the D-Jet. The Medrar sale gave the company the money it needed.

Diamond is making its fourth prototype of the D-Jet, a five-person light jet it hopes to start manufacturing and selling in about two years.

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