Airbus to pay €3.6bn in penalties following bribery and corruption investigation

Airbus has agreed to reach an ‘agreement in principle’ with the U.K. Serious Fraud Office, French and  U.S. authorities regarding an investigation into allegations of bribery and corruption.

If approved by the courts, the agreements will result in Airbus “taking a provision of € 3.6 billion (£3bn) for the payment of potential penalties” to authorities, which, Airbus has said, will be booked into its 2019 accounts.

The investigation relates to allegations of bribery and corruption and to inaccuracies in filings made with the U.S. authorities pursuant to the U.S. International Traffic in Arms Regulations (ITAR).

The agreement with the SFO was the subject of a preliminary court ruling today and will require final judicial approval in a U.K. court. Furthermore, agreements with the PNF and the U.S. authorities also remain subject to approval by French court and U.S. court and regulator, respectively.

The court hearings in France, the U.K. and the U.S. are expected to take place on 31 January 2020.

A spokesperson for Airbus said “Further details will be provided once the agreements have been finalised”

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

The Serious Fraud Office launched an investigation in 2016 after Airbus said it had found discrepancies in disclosures about third-party consultants used on certain aircraft deals.

Parquet National Financier, the French regulator, launched a probe the following year, and the US Department of Justice opened an investigation in 2018.