By Lisa Gordon | July 7, 2014 Estimated reading time 4 minutes, 23 seconds.
Northrop Grumman Corporation is teaming up with Diamond Aircraft Industries to build new intelligence-gathering aircraft.
The U.S. manufacturer of unmanned aerial systems is opening an office close to the Diamond factory in London, Ont., as soon as possible. Richard Crooks, program director and deputy, advanced missions systems development at Northrop Grumman, told Skies that initially the office will be small. It will focus on the engineering and manufacturing of next generation surveillance capabilities that will be incorporated into Diamond aircraft platforms. He said it’s too early to speculate on which aircraft types will be selected, although Northrop Grumman offers modular solutions that allow it to use a variety of platforms.
“There are a lot of military and civil opportunities,” said Crooks. “We’re seeking a broad range of applications in Canada, the U.S. and internationally.”
Initially, the partners will work to develop a manned intelligence, surveillance and reconnaissance (ISR) aircraft, although future projects are likely to include unmanned systems as well.
Peter Maurer, president and CEO of Diamond Aircraft, said the OEM is looking to build upon its strengths as a manufacturer of reliable, relatively low-cost training aircraft.
“We’re not sure yet exactly what opportunities we’ll be part of (with Northrop Grumman),” Maurer told Skies. “It’s above and beyond what we traditionally do. We’ve borne all of our development costs alone up to this point, and self-funded our projects. This is a little bit different, in that we’re able to work together with a large reputable company like Northrop Grumman, and diversify.”
Diversifying makes sense, continued Maurer, especially given the rough ride all general aviation OEMs have endured since the economic slowdown began in 2008. According to data from the General Aviation Manufacturers Association, Diamond shipped 471 aircraft in 2007; but by 2013, that number had dropped to just 139 units.
In February 2013, the company laid off close to 200 workers, the majority of its workforce. At the same time as piston aircraft sales were falling, Diamond had been struggling to fund the development of the D-Jet, a clean sheet aircraft representing the manufacturer’s foray into the personal jet market. When he announced the 2013 layoffs, Maurer also revealed the D-Jet program had been “idled.”
“The D-Jet is a great project,” Maurer recently told Skies. “There is no technical risk in completing the program; but quite frankly, the funding to complete it is no longer there. We’re actively looking for another party who can inject the substantial capital needed to finish it.”
He said the total cost of the program to date is $190 million, and it is about 75 per cent complete.
Maurer added that the OEM survived dire economic times by entrenching and preserving cash flow, while working to rebuild the business with a skeleton staff. Since then, a lot of progress has been made to establish a solid footing for the future, with just under 130 employees currently back at work.
“Whereas we used to produce finished aircraft for our market, we’re now doing that, but also doing a lot of supplier work both inside and outside the Diamond Group,” he explained. “It’s easier to stand on three legs than on one leg.” He added that he hopes the new collaboration with Northrop Grumman will create additional employment in London.
