A logo of Airbus is pictured on their booth during the European Business Aviation Convention & Exhibition (EBACE) in Geneva, Switzerland, May 22, 2017. REUTERS/Denis Balibouse
European planemaker Airbus SE on Tuesday revealed the existence of discrepancies in its regulatory filings related to US arms trafficking rules.
It disclosed it is in talks with U.S. regulators about potential compliance violations about shortfalls reporting certain defense-related deals, adding to its global compliance woes.
While reporting a 4% drop in operating earnings, it also said it would miss delivery targets for one of its most popular plane models, the latest in a series of production hiccups as it strains to make all the new planes it has sold. Still, it stuck to full-year guidance.
The report said Airbus had discovered “certain inaccuracies … pursuant to Part 130 of the US International Traffic in Arms Regulations (ITAR)”, which relates to disclosures over the use of agents and payments of commissions, during a review of its US regulatory compliance procedures and subsequently informed authorities.
The company added: Airbus is cooperating with the US authorities. Airbus is unable to reasonably estimate the time it may take to resolve the matter or the amount or range of potential loss, penalty or other government action, if any, that may be incurred in connection with this matter.
Regarding existing investigations by the UK Serious Fraud Office and France’s Parquet National Financier into alleged corruption, Airbus said that although potential penalties resulting from both “could have negative consequences” for the company, “at this stage it is too early to determine the likelihood or extent of any such possible consequences.”
