Tuesday, February 4, 2020

AirAsia's deals with Airbus in focus as CEO Tony Fernandes steps aside 


Chairman Kamarudin Meranun, too, relinquishes post temporarily over links to bribery scandal.


Airbus SE and AirAsia, the discount airline built by Tony Fernandes, were inseparable for years, with the boisterous aviation executive gorging on ever-larger aircraft orders to become the manufacturer’s biggest customer for single-aisle jets.

That happy marriage ended in acrimony last week after Airbus admitted to illegally trying to sway plane sales and agreed to a record $4 billion bribery settlement. By Monday, Fernandes stepped away from the Malaysian airline he bought in 2001 and turned into one of the best-known brands in Asian aviation.

Fernandes was one of Airbus’s most loyal customers, a fixture at air shows where he’d make a splash with huge deals while bucking the stodgy formalities of traditional business. Among his most memorable moments was the signing of the European company’s biggest order at the 2014 Farnborough expo, where he exchanged man-hugs with legendary, since departed sales chief, John Leahy.

Now a corruption probe that has ricocheted through Airbus for almost four years, claiming the scalps of many senior staff, is coming for its airline counterparts. Fernandes will leave his role as chief executive officer of AirAsia for two months while the government examines corruption claims, according to a statement Monday. Chairman Kamarudin Meranun also stepped down, in a sign of further repercussions from the bribery case.

Fernandes, 55, who is already facing corruption charges in India, and Meranun on Monday denied allegations of wrongdoing, saying they stood down to ensure a full and independent investigation. They added in a newspaper op-ed Tuesday that a Formula 1 sponsorship deal which was the subject of the Airbus accusations was “a branding exercise” and not a venture to make money. Malaysia’s anti-graft agency said Saturday that it was looking into corruption at AirAsia. Airbus, which admitted to the SFO’s allegations as part of its settlement, declined to comment.





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