Airbus agrees to settle bribery cases for about US$3b

London

AIRBUS SE reached an agreement to settle long-running bribery investigations in the UK, France and the US, in a deal that could cost the European airplane manufacturer about US$3 billion.

A final settlement could be announced as early as this week, according to sources. The preliminary deal remains subject to approval by courts and authorities in the three countries, Airbus said in a statement on Tuesday.

The charges involve the use of intermediaries in securing jet orders, a practice that Airbus employed as it tried to reach parity with US rival Boeing Co.

A settlement, among the largest in recent years, would allow Airbus to move past the long-running probe at a time when Boeing is struggling with the grounding of its 737 Max aircraft following two deadly crashes.

The planemaker said that for legal reasons it can't comment on the details of the discussions. The UK Serious Fraud Office declined to comment late on Monday, as did the US Department of Justice and representatives at the office of France's financial prosecutor, the Parquet National Financier.

The UK part of the settlement is set to surpass the record £500 million (S$885 million) fine paid by jet-engine maker Rolls-Royce Holdings Plc, the Financial Times reported earlier.

The corruption saga has lasted almost four years. The company reported itself to the authorities in 2016 after then CEO Tom Enders launched an internal probe.

The Serious Fraud Office opened its investigation that year, followed by its French counterpart and, late in 2018, the Department of Justice.

The impact of the corruption allegations reached high into the ranks at Airbus. The decision to cooperate in the probes allowed Airbus to keep receiving government-backed loans for overseas sales. But it also forced Mr Enders to clean house before retiring last year. Fabrice Bregier, Mr Enders' longtime second-in-command and a candidate to become CEO, was forced out. Guillaume Faury, who had earlier headed Airbus's helicopters unit, replaced him and became CEO in April.

Progress towards a settlement has been slowed by numerous issues, including the availability of judges in France and the UK, holiday scheduling and procedural differences, according to a source. BLOOMBERG