Airbus Settles Corruption Case for Almost 4 Billion
On Tuesday Airbus cut a deal with the prosecutor during the preliminary court ruling in the U.K. The penalty will be an astounding €3.6 billion ($3.96 billion), but will end the UK, US, and French investigation in the company. The deal allows Airbus Chief Executive Guillaume Faury, who took over in April, to move beyond an issue that occupied his predecessor, Tom Enders.
The courts in all jurisdictions all have to hear the settlement and make their decision as well. If they get approval, all of the penalties would be booked as a provision in the company’s 2019 financials.
Due to the issues and headlines surrounding a handful of deadly incidents over the past few years with the 737 Max made by Boeing, Airbus has overtaken Boeing as the world’s largest jet maker by deliveries, a feat it has chased for years. Despite that victory, Airbus has been battling its own production issues at its factories and among its suppliers. Now that a big incident and expense is now behind them, Airbus plans to maintain it's new found title into 2020.