Airbus in Talks with U.S. Regulators about Compliance Violations

European plane maker Airbus notified U.S. regulators about shortfalls reporting certain defense-related deals, adding to its global compliance woes, The Wall Street Journal reports. The company said it would miss delivery targets for one of its most popular plane models, the latest in a series of production setbacks as it struggles to make all the new planes it has sold.

The company said it had reported itself to U.S. authorities about errors made on equipment exports, adding that it was cooperating with U.S. authorities and couldn’t determine if there would be a financial penalties, The Journal adds.

According to Airbus Chief Financial Officer Harald Wilhelm, the transgression related to a failure to properly notify U.S. authorities about the use of outside sales agents, who help broker deals of defense equipment and services.

Wilhelm stressed that Airbus first notified U.S. authorities about a potential problem late last year, which triggered a more in-depth review and, in July, led the company to formally inform U.S. authorities rules were broken.

The wrongdoing concerns compliance with the Part 130 section of U.S. International Traffic in Arms Regulations rules into political contributions, fees and commission involved in export of military equipment, The Journal adds.

Airbus wouldn’t speculate on its potential financial or criminal exposure, as the company is in talks with both the State Department, which would lead any civil probe, and the Justice Department, which could lead a criminal probe, The Journal informs.

Be the first to comment

Leave a Reply

Your email address will not be published.