SriLankan Airlines drags Airbus to court; demands $1 billion for damages
SriLankan Airlines has sued Airbus for $ 1 billion as damages, loss of reputation, reimbursement of costs and interests.
SriLankan Airlines has sued Airbus for $1 billion as damages, loss of reputation, reimbursement of costs and interests, according to media reports. The action follows the information revealed in the judgment of the Crown Court of the United Kingdom approving the Deferred Prosecution Agreement between the Serious Fraud Office and Airbus SE.
Sri Lanka’s flag carrier has also demanded from Airbus for cancellation of the A350-900 Purchase Agreement for four A350-900 aircraft, returning the advance payment of $19 million made for those four A350-900 aircraft.
The previous UNP Government cancelled the purchase of the four A350 aircraft, resulting in SriLankan Airlines paying a cancellation fee exceeding $98 million. The Serious Fraud Office's (SFO) investigation revealed bribery offences in Malaysia, Sri Lanka, Taiwan, Indonesia and Ghana by Airbus SE, media reports suggested.
The SFO’s investigation demonstrated that in order to increase sales, individuals who performed services for and on behalf of Airbus offered, promised or gave financial advantages to others intending to obtain or retain business, or an advantage in the conduct of business, for Airbus SE.
It was alleged that those financial advantages were intended to induce those others to improperly perform a relevant function or activity or were intended to reward such improper performance and that Airbus did not prevent, or have in place at the material times adequate procedures designed to prevent those persons associated with Airbus from carrying out such conduct.