Sri Lankan Airlines has initiated legal action against Airbus SE, Chairman of the national carrier Ashok Pathirage confirmed.
According to the Daily FT, SriLankan Airlines has sued Airbus for $ 1 billion as damages, loss of reputation, reimbursement of costs and interests.
The move comes following information on the judgment of the Crown Court of the United Kingdom which approved the Deferred Prosecution Agreement between the Serious Fraud Office and Airbus SE.
Sri Lankan Airlines has also demanded US$ 19 million form Airbus, which was provided as advance payment for the A350-900 Purchase Agreement for four A350-900 aircraft, which was later cancelled.
The Attorney General’s advice had been sought on the matter whilst the national carrier has hired an international law firm for the case.
The purchase of the four A350 aircraft was cancelled by the former United National Party-led Government, resulting in SriLankan Airlines paying a cancellation fee exceeding US$ 98 million.
The case was filed after the Serious Fraud Office’s (SFO) investigation revealed bribery offences in Malaysia, Sri Lanka, Taiwan, Indonesia and Ghana by Airbus SE.
The SFO’s investigation revealed that between 1 July 2011 and 1 June 2015, Airbus SE failed to prevent persons associated with Airbus SE from bribing others concerned with the purchase of aircraft by SriLankan Airlines from Airbus, namely directors and/or employees of SriLankan Airlines, where the said bribery was intended to obtain or retain business or advantage in the conduct of business for Airbus SE. (NewsWire)