Dubai Firm Buys Majority Of Diamond Aircraft

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Diamond Aircraft, based in Ontario, Canada, has sold a majority interest to Medrar Financial Group, a Dubai-based investment firm, the company announced Monday at the Dubai Airshow. Medrar will provide financing not only for the company's line of piston aircraft, but also for continued development of the single-engine D-Jet, according to Diamond's news release. Medrar has made a "significant commitment" to the company, according to Christian Dries, chairman of the Diamond Group. "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," Dries said.

Diamond faced cash-flow problems and layoffs earlier this year after the Canadian government turned down a request for a $35 million loan. In June, the company said it had secured investment from an unnamed source that would put the D-Jet project back on track. Jamil Marmarchi, CEO of Medrar, said he sees great potential for the D-Jet. "People will always continue to travel," he said. "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. … We are excited not only by the D-Jet but also by the derivative models to follow."