by Ganesh Sahathevan
Airbus has estimated that the damage from its bribery conviction is likely to be in the region of USD 220 Billion.The record setting USD 4 Billion fine is only the start (see story below).
In Malaysia on the other had there is still the sense that Airbus admission needs to be "investigated" and "proven". MIDF Research has gone as far as to speak of a "golden opportunity for both co-founders to strengthen their trustworthiness back in the company and subsequently, the airline industry".
Malaysian authorities, investment houses and various persons in the ruling elite seem unable to comprehend that regardless of what they conclude about AirAsia and AirAsiaX, Airbus will be severely constrained in how it deals with AA and AAX. Dealing with current management and directors as if nothing happened would be contrary to the admission of guilt, and the penalty.
These matters cannot but concern AA and AAX management and boards for both airlines have Airbus fleets.Short of swapping their planes for Boeings or China made C919s, the only logical step is for AA's and AAX's management and board to be purged and replaced with fresh faces who can be proven to be independent of the current structures.
External administrators need to be appointed and the companies restructured.
Airbus put potential damage from bribery conviction at €200bn