AirAsia rejects graft allegations in Airbus bribery case
Malaysia’s AirAsia on February 1 denied any wrongdoing in the purchase of planes from Airbus, after allegations by anti-graft authorities in the UK surfaced in an investigation into sales practices of the European plane maker.
In a statement, the Malaysian budget airline said: “[AirAsia] was neither involved in any way whatsoever with the Britain’s Serious Fraud Office (SFO) investigation of Airbus nor given any opportunity to provide any information or clarification to the SFO.”
AirAsia claimed that the company was “improperly linked” to sponsorship by Airbus of a sports team jointly owned by AirAsia executives, and the company “vigorously rejects and denies” any and all allegations of wrongdoing.
AirAsia’s denial was in response to media reports quoting UK court documents which alleged that directors from AirAsia and its long-haul unit AirAsia X had received bribes from Airbus.
The documents say that a $50-million pay-off was given to executives. However, it also details Airbus executives’ failed attempt to pay an additional $55 million for a “sponsorship” to AirAsia and AirAsiaX.
“No individual decision” to buy planes
AirAsia explained that an agreement to purchase the aircraft was “never made by any single individual decision” but arrived at through collective decision-making by a group of board members.
“The superiority and reliability of the aircraft and increasingly attractive pricing being offered to maintain our competitive edge in the airline business were key considerations. As a customer of Airbus since 2005, AirAsia never made purchase decisions that were premised on an Airbus sponsorship,” the airline’s statement said.
The scandal has prompted the Malaysian authorities to open an investigation over the AirAsia-Airbus disclosures. Malaysian Anti-Corruption Commission head Latheefa Koya said that she was “in touch with the UK authorities” and was already investigating the matter.
AirAsia responded that it would “fully cooperate” with the commission.
“AirAsia is deeply concerned that these allegations will have an adverse and negative impact on the AirAsia brand, reputation and goodwill,” the company said.
AirAsia shares at the stock exchange in Kuala Lumpur fell on January 3, the first trading day after the graft claims became public. AirAsia Group’s share tanked 10.49 per cent, and AirAsia X dropped 7.69 per cent.
Malaysia’s AirAsia on February 1 denied any wrongdoing in the purchase of planes from Airbus, after allegations by anti-graft authorities in the UK surfaced in an investigation into sales practices of the European plane maker. In a statement, the Malaysian budget airline said: “[AirAsia] was neither involved in any way whatsoever with the Britain's Serious Fraud Office (SFO) investigation of Airbus nor given any opportunity to provide any information or clarification to the SFO.” AirAsia claimed that the company was “improperly linked” to sponsorship by Airbus of a sports team jointly owned by AirAsia executives, and the company “vigorously rejects...
Malaysia’s AirAsia on February 1 denied any wrongdoing in the purchase of planes from Airbus, after allegations by anti-graft authorities in the UK surfaced in an investigation into sales practices of the European plane maker.
In a statement, the Malaysian budget airline said: “[AirAsia] was neither involved in any way whatsoever with the Britain’s Serious Fraud Office (SFO) investigation of Airbus nor given any opportunity to provide any information or clarification to the SFO.”
AirAsia claimed that the company was “improperly linked” to sponsorship by Airbus of a sports team jointly owned by AirAsia executives, and the company “vigorously rejects and denies” any and all allegations of wrongdoing.
AirAsia’s denial was in response to media reports quoting UK court documents which alleged that directors from AirAsia and its long-haul unit AirAsia X had received bribes from Airbus.
The documents say that a $50-million pay-off was given to executives. However, it also details Airbus executives’ failed attempt to pay an additional $55 million for a “sponsorship” to AirAsia and AirAsiaX.
“No individual decision” to buy planes
AirAsia explained that an agreement to purchase the aircraft was “never made by any single individual decision” but arrived at through collective decision-making by a group of board members.
“The superiority and reliability of the aircraft and increasingly attractive pricing being offered to maintain our competitive edge in the airline business were key considerations. As a customer of Airbus since 2005, AirAsia never made purchase decisions that were premised on an Airbus sponsorship,” the airline’s statement said.
The scandal has prompted the Malaysian authorities to open an investigation over the AirAsia-Airbus disclosures. Malaysian Anti-Corruption Commission head Latheefa Koya said that she was “in touch with the UK authorities” and was already investigating the matter.
AirAsia responded that it would “fully cooperate” with the commission.
“AirAsia is deeply concerned that these allegations will have an adverse and negative impact on the AirAsia brand, reputation and goodwill,” the company said.
AirAsia shares at the stock exchange in Kuala Lumpur fell on January 3, the first trading day after the graft claims became public. AirAsia Group’s share tanked 10.49 per cent, and AirAsia X dropped 7.69 per cent.
