Diamond Aircraft, maker of small aircraft and motor gliders, announced that they would be laying off 213 people, which is more than half of the workers at its London, Ontario, Canada plant.  It is doing so as a result months of waiting for a loan that it has not yet received from the government that it would need to manufacture its new aircraft, the D-Jet.

According to the President of Diamond Aircraft, Peter Maurer, the workers will end up being recalled if the Canadian federal government gives them the requested $35 million loan.  “We are disappointed and frustrated in the extreme to take this drastic action. We had deferred this action as long as possible,” said Maurer.

According to Canadian Federal Industry Minister Tony Clement, the $35 million loan was currently “under review.”

Orders have already been placed for the new jet, and the company has lined up investments as well.  The company is still waiting for the federal loan to be approved to start production on the new aircraft.