28 May 2008
The situation over Thielert diesel engines has worsened considerably this week, with the bankruptcy firm which is overseeing the reconstruction of the company publicly criticising Diamond Aircraft for what its boss calls a ‘disinformation campaign’.
In late April Thielert ‘ousted’ its founder, Frank Thielert, from his position as CEO which was shortly followed by the company going into insolvency. All this followed a Hamburg court’s decision to nullify the Thielert’s account for 2003, 2004 and 2005 as the company had ‘breached valuation provisions’.
Since that date, the company, with the administrators, has revealed that although it will continue to build engines and parts – and will pay its workers for at least three months – it is no longer honouring warranties on engines installed in Diamond Aircraft.
Not unsurprisingly the news sent shockwaves through the industry, putting both Diamond and Cessna (who had been intending to start producing its diesel 172TD with a Thielert Centurion engine) in a tricky situation. Cessna has put off a decision about the engine in its aircraft and postponed deliveries.
Diamond, however, is in a worse position as its engines are already installed in many aeroplanes. Earlier this week it issued a damning statement saying that although it had attempted to make proposals which would go part of the way to resolving its difficulties, the administrators had rejected them.
“Overall we have the impression that the insolvency administrator is not able to nor interested in providing a path forward which makes current TAE [Thielert Aero Engines] engine operators and owners a priority,” it said.
Yesterday, at a press conference, the administrator countered this accusing Diamond of a “disinformation campaign,” and explaining that although his hands were tied by German insolvency law, he was attempting to negotiate the best outcome for all parties.
• Earlier this month Diamond eased its problem slightly when it flew a DA50 powered by Diamond’s own diesel engine, the 170hp Austro Engine. The rumour is that it is now pulling out all the stops to get the engine certified and ready for retrofitting
• Thielert’s administrators have appointed Prof. Dr. Gunter Kappler, an engine expert, to help move the company forward.
