Indian Airlines’ US$2.2 billion purchase of Airbus jets scrutinised as probe intensifies
- Officials are examining whether a US$20 million payment made to Airbus by Indian Airlines contained bribes
- The state-owned airline had bought 43 Airbus jets in 2006, and committed to provide aircraft-overhaul facilities that were never built, a source says
India’s Enforcement Directorate is inspecting a payment of 1.42 billion rupees (US$20 million) linked to the 2006 purchase of 43 jets by Indian Airlines, as well as a commitment to provide aircraft-overhaul facilities that were never built, according to the person, who asked not to be named as the matter isn’t public.
All told, the investigation is examining benefits to Airbus of 10 billion rupees, the person said. That’s the equivalent of about US$140 million.
The Enforcement Directorate did not respond to two phone calls seeking comment, while a spokesman for Airbus declined to comment.
The decision to reinvigorate the probe in recent weeks suggests Airbus has more fallout to contend with after its record US$4 billion legal settlement for making payments to win jet orders.
