Why Sri Lankan Airlines is suing Airbus for $1 Billion
SriLankan Airlines is suing Airbus for USD 1 billion in compensation for relating the airline to bribery claims surrounding their order of six A330s, four A350s, and four A350s for lease.
The lawsuit followed after the plane manufacturer was fined a record $4 billion for allegations of bribery and corruption over aircraft sales in January 2020.
The European planemaker was investigated by French and British authorities for the suspected corruption over jet sales dating back more than a decade.
Airbus is said to have paid bribes in Malaysia, Sri Lanka, Indonesia, Taiwan, and Ghana between 2011 and 2015. The company used a network of secret agents to pay large-scale backhanders to officials in foreign countries to land high-value contracts.
There are further bribery claims with other countries which include China, Japan, Russia, Kuwait, Brazil, and Turkey.
With the Sri Lankan airlines contract, Airbus is alleged to have offered a Brunei-based straw company about $16.84 million in bribes in which only $2 million was ever paid.
Sri Lankan Airlines is suing for damages, loss of reputation, and the reimbursement of costs and interests.
The airline is also seeking to cancel the outstanding delivery of four A350-900s and returns for the advance payment of $19 million made for those four aircraft.