AIRBUS SE’s US$55 million (RM227.8 million) offer to AirAsia Group Bhd was never made due to a review on third party relationships initiated by the plane maker in September 2014, a court document released by the UK Serious Fraud Office (SFO) showed.

Between October 2013 and January 2015, European Aeronautic Defence and Space Company (EADS France SAS), later Airbus Group SAS, paid US$50 million as sponsorship for a sports team jointly owned by AirAsia Executive 1 and AirAsia Executive 2 but was legally unrelated to AirAsia and AirAsia X.

Airbus employers also offered an additional US$55 million, but the offer was not finalised and no payment was made.

“AirAsia Executive 1 and AirAsia Executive 2 were key decision-makers in AirAsia and AirAsia X, and were rewarded in respect of the order of 180 aircraft from Airbus.

“The payments to the sports team were intended to secure or reward improper favour by them in respect of that business.

“In September 2014 Airbus had initiated a review of third party relationships, which led to a freeze of all SMO (strategy and marketing organisation) International payments on behalf of the commercial division,” the document revealed.

By December 2014, SMO International, a division within the company, was no longer in a position to fulfil any commitment, hence the US$55 million payment was never made.

Email excerpts

Airbus announced on July 15, 2014 that it had inked a memorandum of understanding (MoU) with long-haul budget carrier AirAsia X in relation to the purchase of 50 A330-900neo aircraft.

Four days later, on July 19, 2014, AirAsia Executive 1 emailed Airbus employee 2 (senior) about payments stating that: “Instead of sponsorship we want to put it as a grant…”

Responding to that on the same day, Airbus employee 2 (senior) wrote to AirAsia Executive 1: “I just need to show something serious for auditors. To be honest, Airbus employee 5 (very senior), and Airbus employee 6 (very senior) and I don’t care what it is.”

A contract was signed on November 24, 2014 and December 15 the same year. AirAsia X confirmed the order for the purchase of 55 A330-900neo aircraft.

An Airbus press release then had stated: “AirAsia X… has placed a firm order with Airbus for 55 A330neo aircraft. This is the largest single order to date for the best-selling A330 family and reaffirms AirAsia X’s position as the biggest A330 airline customer worldwide… The announcement covers the firming up of a MoU for 50 A330neo signed during the Farnborough Air Show in July 2014, plus an additional five aircraft.”

The following day, AirAsia Executive 1 emailed Airbus employee 2 (senior) stating that: “We have kept our side of the deal… Please don’t let us down…”

Airbus employee 2 (senior) replied on the same day: “Now if I bend the rules any more I hope you will see I will end up in trouble… I (sic) stand by my commitment of 50m and increase to 55m”.

On December 18, 2014, Airbus employee 2, who is a senior person in the company, wrote to AirAsia Executive 1 saying that the payment will follow the delivery schedule.

“The payments will follow the new delivery schedule 1m per ac from Airbus. I would prefer that Airbus provides the money for PR and events or sponsorship related to developing your network. We will not require any proof or invoice for these payments”.

These details of the deal had been revealed as part of Airbus’ agreement with the French Parquet National Financier (PNF), the UK SFO, and the US Department of Justice (DoJ) to resolve investigations into allegations of bribery and corruption.

The European plane maker admitted guilt and agreed to pay US$4 billion in a settlement approved by courts in France, the US and the UK.

AirAsia co-founders Tony Fernandes and Kamarudin Meranun have denied any wrongdoing and said the UK SFO did not reach out to them during its four-year probe.

The duo have voluntarily stepped down from their positions for two months, pending an internal investigation.

AirAsia is also being investigated by Malaysian authorities over the Airbus scandal. – February 9, 2020.