Airbus to Pay $4 Billion to Settle Corruption Inquiry

“After accidents, you never rejoice,” Mr. Faury told the French newspaper Le Monde last summer — a sentiment repeated since then by Airbus executives.

Medium-haul Airbus planes that could be alternatives to the Max were already backed up in production because of strong demand from airlines, he said in the interview. “I don’t know what’s going to happen in the long term,” he added.

Still, the Friday settlement clears the way for Airbus to focus more on improving its already formidable market position against Boeing.

Airbus will pay 2.1 billion euros to France, €984 million to Britain and €526 million to the United States, Mr. Bohnert, the French prosecutor said Friday.

The plane maker was investigated by French and British authorities over bribery accusations on jet sales that date back more than a decade. It also faced an American inquiry over possible violations of export controls.

The case focused on the existence of an opaque system of hundreds of third-party Airbus agents who are accused of bribing officials in 16 countries — including Japan, Russia, China and Nepal — to buy the company’s civilian aircraft and satellites.

The investigation into possible wrongdoing was initiated by Airbus itself in 2016 when the chief executive at the time, Tom Enders, opened an internal inquiry after the company discovered irregularities during an audit of business practices. After confirming evidence of wrongdoing, Airbus reported it to the authorities, a strategy aimed at reducing any potential penalties.

Article source: https://www.nytimes.com/2020/01/31/business/airbus-corruption-settlement.html?emc=rss&partner=rss