DIAMOND SNUBS THIELERT

10 Jul 2008

Save to de.icio.us

DIAMOND Aircraft has announced it will be not be bidding for bankrupt Thielert Aircraft Engines (TAE).

Diamond says, "The Insolvency Administrator [for Thielert] is continuing his pattern of release of only partial information. Diamond will not participate in such a process.

"Diamond Aircraft has decided not to participate in the TAE Bidding Process. The Summary Description, in Diamond's opinion, withholds relevant facts regarding the TAE engines, the TAE customers and the competitive market forces.

"The restrictions of the Confidentiality Agreement effectively preclude the obtaining of factual and objective information about TAE and its engine development and production, that is vital to the due diligence process regarding the valuation of TAE and the evaluation of the business risks."

There has been a war of words between Diamond Aircraft and the Thielert Administrator over the past two months.

Many Diamond aircraft powered by Thielert turbodiesel engines around the world face being grounded through lack of spares under warranty.

Diamond is developing its own turbodiesel aero engine as a replacement, but it's not at all clear what will happen to the existing Thielert-engined aircraft.

Meanwhile, Thielert is said to be back producing engines and spare parts. It plans to attend next week's Farnborough Air Show, Tannkosh and also the EAA AirVenture at Oshkosh, USA at the end of July.

LINKS
Diamond Aircraft www.diamond-air.at
Thielert Aero Engines www.thielert.com