|Airbus reaches agreement to pay a fine of € 3.6 billion|
This agreement follows a lengthy investigation into the plane maker’s use of a middlemen similar to broker to secure huge plane orders from around 20 countries. Serious Fraud Office (SFO) carried the lengthy investigation.
The settlement was announced earlier this week and the court in three countries approved it yesterday i.e. on 31st January to settle this inquiry being held since last four years.
Airbus had boosted profits by €1bn as a result of violations uncovered in their investigation as per the French prosecutors.
The French Parquet National Financier (PNF), will receive about €2.1bn. Similarly, the U.K. Serious Fraud Office (SFO) will receive €984 million and the Department of Justice (DOJ) will receive €526 million.
The authorities said that in a case, Airbus paid a whooping $50 million in sponsorship to a sports team owned by airline executives, to win a contract for 180 aircraft from AirAsia Group.
|Airbus received huge orders from Air Asia by similar way|
Airbus also had paid officials in Ghana, Sri-Lanka, Malaysia, Taiwan and many other countries to win orders worth billions of dollar.
As per Airbus, it received credit from the authorities for having reported and for its consistently strong cooperation during the investigation.
The punishment could have been more serious if Airbus had not cooperated during the investigation.
As per reports, this is the largest Deferred Prosecution Agreement (DPA) settled by the Serious Fraud Office (SFO). This is also the largest bribe fine in the world.
Airbus in a press release said that the PNF, SOF and DOJ have agreed to suspend prosecution of Airbus for a duration of three years. It also stated that prosecution will be discontinued if Airbus complies with the terms of the agreement throughout this period.
|Military deals were also found during investigation|
Guillaume Faury, Chief Executive Officer of Airbus said, “The agreements approved today with the French, UK and US authorities represent a very important milestone for us, allowing Airbus to move forward and further grow in a sustainable and responsible way. The lessons learned enable Airbus to position itself as the trusted and reliable partner we want to be.”
Both the Aviation giants, Airbus and Boeing are facing financial issues. Boeing last week reported a loss of $636 million, its first ever loss in two decades. The 737 MAX grounding has cost it around $19 billions till date.