Support Skift’s Independent JournalismMake a Contribution Now
The Toulouse, France-based planemaker said in a statement Sunday that it’s cooperating with investigators probing its civil aviation business. Airbus had flagged to U.K. regulators and the European Export Credit Agencies earlier this year “misstatements and omissions” involving the outside contractors in some export financing applications, which it found through an internal probe.
The credit agencies, including U.K. Export Finance, have suspended some of the backstop financing that Airbus uses to help sell commercial aircraft since the first revelations made four months ago. Airbus said in a July 27 statement that a process for re-establishing export credit “has been agreed and is ongoing.”
Until the financing is restored, Airbus and rival Boeing Co. face the challenge of navigating an uncertain market with limited government assistance. Chicago-based Boeing has been unable to tap trade financing because a congressional impasse has left the U.S. Export-Import bank with too few directors to approve deals.
Jefferies Equity Research estimates that export-credit agencies last year provided 7 percent of financing for Airbus plane deliveries, compared with 45 percent from leasing companies and 40 percent from airlines themselves.
The Airbus investigation adds to the scrutiny of the role played by cross-border intermediaries. Monaco-based Unaoil SAM, which served as a go-between for companies and officials in the Middle East, Africa and former Soviet countries, was searched by authorities earlier this year amid allegations of corruption.
Airbus said in the July 27 filing that it’s undertaking a sweeping review involving “legal, investigative, and forensic accounting” of consultants and other third parties used to support sales. The European planemaker said it’s also using greater due diligence to screen potential contractors.
“The group cannot exclude that the comprehensive review and these enhancements of its controls and practices lead to additional commercial disputes or other consequences in the future,” the filing said.
©2016 Bloomberg L.P.
This article was written by Mark Deen, Andrea Rothman and Julie Johnsson from Bloomberg and was legally licensed through the NewsCred publisher network.