British anti-corruption authority is investigating Airbus

 

British anti-corruption authority has opened a criminal investigation against Airbus Group SE amid allegations of fraud, bribery, and corruption, reported Bloomberg.

The charges are related to some of the external consultants of the company. French aircraft manufacturer group commented that they cooperate with the authorities.

The agency reminds that earlier this year, Airbus itself issued an alert to the British regulator and European credit agencies because of misstatements and omissions of external service providers related to export financing.

After that statement, France, Germany and Britain stopped the export financing for the company. In late July, Airbus issued a press release stating that the process of restoration of funding continues.

Against this scandal Airbus and its US rival Boeing Co. face the challenges of uncertain markets amid limited government assistance. Boeing has problems because of inability to reach approval of transactions after the US Agency for Export financing was almost left without leadership, to approve the transactions.

According to consulting firm Jefferies Equity Research credit agencies have provided 7% of the funding for the supply of aircraft to Airbus. Another 45% are from leasing companies and 40% from airlines that ordered new machines.

The investigation against Airbus raises questions about the role of cross-border intermediaries in the air business. Analysts say it will have a negative impact because intermediaries in transactions often are sought by the authorities because of concerns about corruption.

Airbus warns that the situation may lead to additional conflicts and more severe consequences in the future.

About the Author

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Bob Sanders
Bob is with Wings Journal from the very beginning. Besides writing news here, he likes to do plane spotting during the weekends and tries to get better at photography.

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