Articles Entitled: (1) "Airbus Allegedly Bribed AirAsia, AirAsia X RM205m In Sports Team Sponsorship To Secure Deals" And (2) "MACC Investigating Airbus Bribe Claims Against Two AirAsia Executives"
|Type||Reply to Query|
|Reply to Bursa Malaysia's Query Letter - Reference ID||IQL-01022020-00001|
|Subject||Articles Entitled: (1) "Airbus allegedly bribed AirAsia, AirAsia X RM205m in sports team sponsorship to secure deals" and (2) "MACC investigating Airbus bribe claims against two AirAsia executives"|
AIRASIA GROUP BERHAD ("AirAsia" or the "Company")
Clarification in relation to the news articles appearing in TheEdgeMarkets website on Saturday, 1 February 2020, entitled (1) "Airbus allegedly bribed AirAsia, AirAsia X RM205m in sports team sponsorship to secure deals"; and (2) "MACC investigating Airbus bribe claims against two AirAsia executives"
|Query Letter Contents||
We refer to the above articles appearing in TheEdgeMarkets website on Saturday, 1 February 2020, a copy of each are enclosed for you reference.
Please furnish Bursa Securities with your reply via Bursa Link immediately.
c.c. : Market Surveillance Dept., Securities Commission (via fax)
The Board of Directors of AirAsia would like to clarify on the news articles appearing in TheEdgeMarkets website on Saturday, 1 February 2020, entitled (1) "Airbus allegedly bribed AirAsia, AirAsia X RM205m in sports team sponsorship to secure deals"; and (2) "MACC investigating Airbus bribe claims against two AirAsia executives", as well as other articles in the press regarding the Deferred Prosecution Agreement entered into by Airbus SE and the U.K. Serious Fraud Office (SFO) on 31 January 2020.
At the outset, AirAsia wishes to clearly state that it was neither involved in any way whatsoever with the SFO’s investigation of Airbus nor given any opportunity to provide any information or clarification to the SFO.
The articles referenced above allege that certain agreements by AirAsia to order Airbus aircraft were improperly linked to sponsorship by Airbus of a sports team jointly owned by AirAsia executives. AirAsia vigorously rejects and denies any and all allegations of wrongdoing.
The entering into of each aircraft purchase agreement was never made by any single individual decision, but instead arrived at through careful evaluation, deliberation and the collective decision of the board members after taking into account technical specifications, aircraft flight performance and operating economics. The superiority and reliability of the aircraft and increasingly attractive pricing being offered to maintain our competitive edge in the airline business were key considerations. As a customer of Airbus since 2005, AirAsia never made purchase decisions that were premised on an Airbus sponsorship.
We also wish to emphasise that all negotiations and dealings leading to the signing of any aircraft purchase agreement have been undertaken directly with Airbus on an arm’s length basis, and without the involvement of any third parties or intermediaries. AirAsia executives negotiated rigorously in the interests of the company and had at all times acted in good faith. In any event, AirAsia is aware that correspondence between the Company and Airbus dating back more than a decade has been reported in the press without proper context or review, and we are concerned that views and opinions on the matter may have been formed unfairly and prematurely.
Furthermore, the involvement of Airbus in the sponsorship of the sports team was a well-known and widely-publicised matter bringing branding and other benefits to Airbus. AirAsia’s own sponsorship of the sports team went through due internal assessment and approvals before being considered and approved by the board.
As AirAsia and its executives have no visibility on Airbus’ internal processes, we cannot comment on or be associated with any alleged failures or lapses on the part of Airbus to comply with its own policies or applicable legal requirements.
AirAsia is deeply concerned that these allegations will have an adverse and negative impact on the AirAsia brand, reputation and goodwill. AirAsia is monitoring developments in this matter and will review any allegations or negative inferences concerning or affecting AirAsia and/or any of its executives and will fully cooperate with the Malaysian Anti-Corruption Commission and the relevant authorities where required.
The Company shall make the necessary announcement(s) as appropriate when there are further developments to this matter.
This announcement is dated 2 February 2020.
|Company Name||AIRASIA GROUP BERHAD|
|Date Announced||02 Feb 2020|
|Category||General Announcement for PLC|