Airbus warns on US filings

Airbus said it had uncovered inaccuracies in its filings to US regulators over arms technology sales, drawing the US for the first time into a scandal over alleged misconduct at Europe’s largest aerospace firm.

It also warned about potentially significant fines resulting from existing bribery investigations in Britain and France over the use of middlemen in civil airplane sales, which have triggered a sweeping internal probe.

But it said it was too early to guess the size or timing of any European penalties, or the outcome of the new US findings. Shares in the defence and civil aviation group rose more than 4% after it posted a smaller than expected drop in third-quarter profits despite jetliner delivery delays.

However, the gains were overshadowed by news that Airbus had itself unearthed inaccuracies in past filings to the US State Department on defence technology exports.

These involved inaccurate statements made by Airbus under a section of the US International Traffic in Arms Regulations, or ITAR, which governs the use of commissions and agents.

Airbus said the flaws were first discovered during an audit at the end of 2016 and were confirmed in an internal follow-up review completed in the third quarter.

Finance director Harald Wilhelm said the European company had not disclosed any secrets about US technology and that the issue was restricted to the use of sales agents and commissions, governed under part 130 of the ITAR rules.

It is separate from investigations into the use of agents in commercial airplane sales, which are not subject to the same US controls as weapons exports, but do have some US restrictions over the use of advanced navigation technology.

“This is about defence equipment and services related to it,” Mr Wilhelm told reporters. He declined to say whether the latest disclosure could lead to an investigation by the US Department of Justice (DoJ), which has so far stayed out of the European bribery probes.

The DoJ shares jurisdiction for ITAR rules with the state department where criminal activity is suspected. A person familiar with the latest case said it involved inaccuracies over both names of agents and amounts paid.

Reuters


More in this Section

US rate fears crash party

No surprise if airlines collapse as winter sets in

Little drama and little joy from today’s budget


Breaking Stories

Paris seeks to attract London's City workers with new English school after Brexit

Mark Zuckerberg faces fresh call to be removed as Facebook’s chairman

Finance Ireland agrees to buy Pepper Money and enter Irish mortgage market

'They are going around the country like cowboys' - John McGuinness urges Govt to regulate receivers

Breaking Stories

David Beckham admits marriage is ‘hard work’: Is it normal for long-term relationships to be tough?

On World Menopause Day: 5 myths you really need to stop believing

Photography awards capture life at its wildest

This is how to stay healthy as a new parent – according to The Body Coach

More From The Irish Examiner