Malaysia-based AirAsia Group chief executive officer Tony Fernandes and chairman Kamarudin Meranun will step aside for at least two months to allow authorities to probe a bribery scandal.

 

The airline and the authorities are investigating allegations Airbus paid a bribe of $50 million (S$68.5 million) to win plane orders from the company, said a Reuters report.

 

A committee comprising the non-executive members of AirAsia's board will review the allegations and take any necessary action, Asia's biggest budget airline said.

 

Fernandes, one of the aviation industry's best-known executives, and Kamarudin will remain advisers, however, "in view of the current difficult economic circumstances facing the airline industry", the company added.

 

Senior company executive Tharumalingam Kanagalingam will be the acting CEO, with the changes effective immediately.

 

In a joint statement, Fernandes and Kamarudin denied any allegations of wrongdoing or misconduct as directors of AirAsia.

 

Malaysia's anti-graft agency is also investigating the allegations.

 

In a statement made on Saturday, AirAsia said it was neither involved in any way whatsoever with the UK Serious Fraud Office's (SFO) investigation of Airbus nor given any opportunity to provide any information or clarification to the SFO.

 

It was alleged that certain agreements by AirAsia to order Airbus aircraft were improperly linked to sponsorship by Airbus of a sports team jointly owned by AirAsia executives. AirAsia said it vigorously rejected and denied any and all allegations of wrongdoing.

 

"The entering into of each aircraft purchase agreement was never made by any single individual decision, but instead arrived at through careful evaluation, deliberation and the collective decision of the board members after taking into account technical specifications, aircraft flight performance and operating economics. The superiority and reliability of the aircraft and increasingly attractive pricing being offered to maintain our competitive edge in the airline business were key considerations. As a customer of Airbus since 2005, AirAsia never made purchase decisions that were premised on an Airbus sponsorship," it said. 

 

"We also wish to emphasise that all negotiations and dealings leading to the signing of any aircraft purchase agreement have been undertaken directly with Airbus on an arm’s length basis, and without the involvement of any third parties or intermediaries. AirAsia executives negotiated rigorously in the interests of the company and had at all times acted in good faith.   In any event, AirAsia is aware that correspondence between the company and Airbus dating back more than a decade has been reported in the press without proper context or review, and we are concerned that views and opinions on the matter may have been formed unfairly and prematurely."

 

"AirAsia is deeply concerned that these allegations will have an adverse and negative impact on the AirAsia brand, reputation and goodwill. AirAsia is monitoring developments in this matter and will review any allegations or negative inferences concerning or affecting AirAsia and/or any of its executives and will fully cooperate with the Malaysian Anti-Corruption Commission and the relevant authorities where required," it added. - TradeArabia News Service