By Emmanuel Samarathisa
CONCERNS are brewing over business dealings between the AirAsia group and Airbus SE as Malaysian investigators move in to probe executives from the discount airline who are said to be beneficiaries of an RM205 mil bribe.
Industry sources have pointed out that there are “worries” that agreements inked by AirAsia Group Bhd (AAGB) and Airbus on Aug 30 last year may not pan out accordingly in the light of investigations into AirAsia.
According to a press release by AAGB that day, these agreements entail, among others, the purchase of 12 A330neo and 30 A321XLR aircraft, Airbus’ expansion of its maintenance, repair and overhaul presence in the country and the establishment of the Airbus Malaysia Digital initiative to boost the competitiveness of the local aerospace sector.
Spokespeople from Airbus and the AirAsia group declined to comment on the future of a partnership that was signed and witnessed by a string of high-profile personalities including Malaysian Prime Minister Tun Dr Mahathir Mohamad.
“We do not have any comment,” an Airbus spokesperson tells FocusM. A spokesperson from AirAsia also declined to comment.
According to UK High Court documents released Jan 31, British prosecutors from the Serious Fraud Office (SFO) found that Airbus bribed executives from AirAsia and its long-haul sister AirAsia X Bhd (AAX) as a reward for an order of 135 planes.
SFO said Airbus paid US$50 mil (RM205 mil) in sponsorship to a sports team jointly owned by the two AirAsia executives. These were among the details Airbus divulged to authorities as part of a US$4 bil settlement.
While these executives were not named, AirAsia founders Tan Sri Tony Fernandes (pic) and Datuk Kamarudin Meranun had been implicated due to their past ownership of the now-defunct Caterham Formula One team.
Fernandes and Kamarudin have stepped down from their executive posts as of Feb 3 for two months to make way for investigations. But they remain on the board as non-executive directors as well as controlling shareholders of both companies.
An industry source believes that there could be “some hiccups” over segments of the agreement.
“What could possibly happen is that the details of the orders and schedule may be revised,” the source tells FocusM on condition of anonymity as investigations are ongoing. Another airframer as well as airline “could be roped into” the various aerospace initiatives, the source added.
On Feb 5, AAGB and AAX announced to Bursa Malaysia that they would form a committee to review the SFO findings.
Regulators Malaysian Aviation Commission and Securities Commission Malaysia as well as enforcement agency Malaysian Anti-Corruption Commission have launched separate inquiries into the scandal.
Fernandes and Kamarudin have maintained their innocence. “We are all in shock. We did nothing wrong. But another challenge and we come back stronger,” the duo wrote in a Feb 3 memo to staff.
Tharumalingam Kanagalingam (also known as Bo Lingam) has been appointed as the acting AAGB CEO in the interim. – Feb 7, 2020
