Budget airline pioneer Tony Fernandes steps aside while successful carrier he launched goes into free fall
Malaysian mogul Tony Fernandes, one of the aviation industry’s best-known executives, temporarily stepped down on February 3 as chief executive of the AirAsia budget carrier he co-founded amid US$50 million bribery allegations involving Airbus, the world’s largest plane maker.
The bribery claims involve two unnamed senior AirAsia executives and were brought forward by prosecutors from the United Kingdom’s Serious Fraud Office (SFO) on January 31, which said Airbus had used hidden payments to win deals in a pattern of worldwide corruption. Airbus admitted to the broad allegations as part of a record $4 billion settlement to avoid criminal prosecution.
The Malaysian Anti-Corruption Commission (MACC) has initiated an investigation into the claims, with its chief commissioner Latheefa Koya issuing a statement saying the anti-graft agency is in touch with UK authorities over the matter. Malaysia’s aviation and securities regulators have also launched independent probes into the spiraling scandal.
As global carriers grapple with lower margins and air travel disruptions linked to the worsening coronavirus epidemic, allegations of bribery and corruption have cast a cloud of uncertainty over one of the best-known brands in Asian aviation and put AirAsia Group Bhd and its long-haul subsidiary AirAsia X Bhd’s share prices in a tailspin.
Nile Bowie is a journalist and correspondent with the Asia Times covering current affairs in Singapore and Malaysia. He can be reached at nilebowie@gmail.com.
Malaysian mogul Tony Fernandes, one of the aviation industry’s best-known executives, temporarily stepped down on February 3 as chief executive of the AirAsia budget carrier he co-founded amid US$50 million bribery allegations involving Airbus, the world’s largest plane maker.
The bribery claims involve two unnamed senior AirAsia executives and were brought forward by prosecutors from the United Kingdom’s Serious Fraud Office (SFO) on January 31, which said Airbus had used hidden payments to win deals in a pattern of worldwide corruption. Airbus admitted to the broad allegations as part of a record $4 billion settlement to avoid criminal prosecution.
The Malaysian Anti-Corruption Commission (MACC) has initiated an investigation into the claims, with its chief commissioner Latheefa Koya issuing a statement saying the anti-graft agency is in touch with UK authorities over the matter. Malaysia’s aviation and securities regulators have also launched independent probes into the spiraling scandal.
As global carriers grapple with lower margins and air travel disruptions linked to the worsening coronavirus epidemic, allegations of bribery and corruption have cast a cloud of uncertainty over one of the best-known brands in Asian aviation and put AirAsia Group Bhd and its long-haul subsidiary AirAsia X Bhd’s share prices in a tailspin.
Read the full story at Asia Times.
