Today, Diamond has announced a program that explains the current situation, offers specific alternate options and offers maximum flexibility in accommodating each position holder's individual needs.
The basic attributes that made the DA42 an award-winning sensation are unchanged. What has changed is the support of the engines, with the uncertain future of an insolvent TAE continuing to operate under bankruptcy protection, and with dramatically increased operating costs for TAE engines, due to TAE's denial of the warranty and Life Extension Program Costs.
Pending resolution of these very fundamental issues, Diamond has had no choice but to suspend production of TAE powered DA42's indefinitely. Although production of TAE-equipped DA42s may resume at some point - assuming financial viability of TAE's successor entity, technical improvements to extend inspection intervals, and availability of full warranty coverage - this is uncertain and not under Diamond's control.
Accordingly, Diamond Aircraft is offering alternative options to its North American DA42 position holders, with special consideration given to those early position holders, who had built theoretical equity in their positions, due in combination to the long backlog and significantly increased prices since introduction, due to the weak US dollar.
DA42 Position Holder may chose from the following options:
Take immediate delivery of a TAE-equipped aircraft. A very limited number of TAE-equipped aircraft are available for delivery from distributor inventory. All such customers are eligible for the Diamond DA42 Customer Assistance Program, also announced today, that may address the current support issues for many position holders.
Keep the deposit on their DA42 tdi position, anticipating possible resumption of TAE-powered DA42 production.
Apply the DA42 tdi deposit to a new contract on an Austro-engine equipped DA42 NG (Next Generation), or a Lycoming-engine equipped DA42 L360. Customers who have early lower-priced DA42 contracts will receive a credit proportional to the equity they have built up between the base price of their contract and the last published base price of $532,675.
Cancel the DA42 order and receive a $20,000 credit to be applied against the purchase or order of another Diamond aircraft, including the DA40 XLS, DA50 and D-JET.
Request a deposit refund. Those DA42 position holders who are past due on their latest communicated delivery date may cancel their order and request refund of their deposit.
"Diamond enjoys a great, loyal and supportive customer base. With the uncertainty regarding resumption of TAE powered DA42 production and viable options now on the horizon, we designed this program to offer maximum flexibility to our DA42 position holders. Whether they remain true to their dream of flying the most modern light GA aircraft in existence, want to fly now, transfer their interest and equity to the DA42 NG, DA42 L360, the DA50 or D-JET, or if regrettably they have simply chosen to move on, this program offer addresses all options", said Heike Larson, Diamond's VP Sales and Marketing.