AirAsia’s colorful CEO Tony Fernandes has stepped aside from the company while authorities probe unusual payments at the Malaysian carrier, as the fallout from a US$4 billion bribery fine at Airbus reverberates across the industry.
The shock decision came after the British Serious Fraud Office released details of a probe that found individuals associated with the planemaker had paid to secure deals with AirAsia and its long-haul unit, AirAsia X.
“We are relinquishing our executive roles with immediate effect for a period of two months, or such other period that the companies may deem fit,” Fernandes and executive chairman Kamarudin Meranun on Monday said in a statement.
They said that they “categorically deny any and all allegations of wrongdoing or misconduct on our part as directors of AirAsia. We would not harm the very companies that we spent our entire lives building up to their present global status.”
They are to remain with the airline as advisers, they added.
The Malaysian Anti-Corruption Commission on Saturday said that it was empowered to investigate any act of corruption committed by citizens or permanent residents anywhere outside the country.
Two other agencies in Malaysia, including the Malaysian Civil Aviation Authority and the Malaysian Securities Commission, reportedly have started their own probes.
Fernandes has been one of Airbus’ most loyal customers and his Malaysia-based budget airline, which he in 2001 bought for 1 ringgit (US$0.24 at the current exchange rate), is the European manufacturer’s largest customer for single-aisle jets.
The news sent yesterday shares in AirAsia plunging more than 8 percent, having already plummeted more than 10 percent the previous day following the release of the office’s investigation.
Tan Kam Meng, analyst with local brokerage TA Securities, warned of further losses if Fernandes and Kamarudin are charged.
“If the probe is unfavorable against them or they are charged in court, the impact will be a disaster to shareholders,” Tan told reporters. “I am shocked by the news of the bribery.”
The losses have been compounded by a deadly virus outbreak that has seen several airlines cancel flights to China, which is one of AirAsia’s most profitable routes.
“It is a double whammy for AirAsia,” Tan said.
A French court last week said that Airbus had agreed to pay 3.6 billion euros (US$4 billion) in fines to Britain, France and the US to settle corruption inquiries sparked by suspicious equipment sales.
A court document on the office’s Web site says that EADS France — which was later renamed as Airbus Group — paid US$50 million as sponsorship for a sports team owned by two unnamed AirAsia executives.
“Key decisionmakers” in AirAsia and AirAsia X allegedly rewarded the firm with an order of 180 aircraft.
Fernandes and Kamarudin have not been shy in flaunting their wealth and both once owned the now-defunct Caterham Formula One racing team, while they are also majority owners of London soccer club Queens Park Rangers.
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