AirAsia boss Tony Fernandes, and Chairman Kamarudin Meranun to step down on bribery charges

Date:

Trending

AirAsia Group CEO Tony Fernandes and Chairman Kamarudin Meranun will step aside for at least two months while the airline and authorities investigate allegations Airbus paid a bribe of $50 million to win plane orders from the company.

- Advertisement -

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 on Monday.

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.

- Advertisement -

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.

“We would not harm the very companies that we spent our entire lives building up to their present global status,” they said.

Shares of AirAsia and unit AirAsia X fell on Monday after the allegations by Britain’s Serious Fraud Office (SFO) came to light on Friday. AirAsia stock fell as much as 11% to 1.27 ringgit, their lowest since May 2016, while AirAsia X dropped 12% to an all-time low of 11.5 Malaysian sen.

Malaysia’s anti-graft agency is also investigating the allegations. AirAsia has said it never made any purchase decisions that were premised on Airbus sponsorship, and that it would fully cooperate with the Malaysian Anti-Corruption Commission (MACC).

Malaysia’s Securities Commission said on Sunday it would also examine whether AirAsia broke securities laws.

The allegations were revealed as part of a record $4 billion settlement Airbus agreed with France, Britain and the United States. Prosecutors said the company had bribed public officials and hidden payments as part of a pattern of worldwide corruption.

“This agreement and the contents were arrived at without any reference to us; neither were any explanations sought from us,” Fernandes and Kamarudin said in their statement.

“This is in clear violation of fundamental legal principles of fairness.”

Airbus said at the weekend it would not comment on the Malaysian investigations.

The SFO’s allegations concern a 2012 sponsorship agreement between the now-defunct Caterham Formula 1 racing team, founded by Fernandes, and Airbus’s then-parent, EADS.

The SFO said on Friday that between October 2013 and January 2015, EADS paid $50 million to sponsor a sports team which was jointly owned by two people described as AirAsia Executive 1 and Executive 2. It said Airbus employees offered an additional $55 million, though no payment was made.

Fernandes bought Caterham together with Kamarudin in 2011.

The SFO said Executives 1 and 2 were “key decision makers in AirAsia and AirAsia X, and were rewarded in respect of the order of 180 aircraft from Airbus”.

Analysts said the accusation against AirAsia comes at a particularly bad time as airlines grapple with a slowdown in business because of the fast-spreading coronavirus epidemic that has killed more than 300 people in China and disrupted air travel.

TA Securities downgraded AirAsia Group stock to “sell” from “buy”.

THE SNAPSHOTS

Sign up to get quick snaps of everyday happening, directly in your inbox.

We don’t spam! Read our privacy policy for more info.

- Advertisement -

Support our independent journalism PayPal (Outside India) For PayU (For Indian Readers).

Krishna Mali
Krishna Mali
Founder & Group Editor of TechGraph.

More Latest Stories

More Articles

Salary‑Powered Loans vs. Overdrafts: Choosing the Right Tool for Cash Emergencies

In the face of financial uncertainty, quick access to cash can offer much-needed relief. Whether it’s a medical bill, a delayed reimbursement, or an...

Equity 360 leads $2.5 Mn Growth round Funding for Avis Hospital from NABARD’s NABVENTURES

Avis Hospital, India based specialty centre dedicated to the treatment of varicose veins, has raised $2.5 million in a strategic growth capital round from NABVENTURES, the venture capital arm of the National Bank for Agriculture and Rural Development (NABARD). The investment was strategically facilitated by...

Alphabet Director R. Martin Chavez Granted 2,016 Stock Units

R. Martin Chavez, a director at Alphabet Inc., received 2,016 Class C Google Stock...

Jensen Huang Files to Sell NVIDIA Shares Worth $12.45 Million

Jen-Hsun Huang, President and CEO of NVIDIA Corporation, filed to sell 75,000 shares of...

Alphabet Director Frances Arnold Awarded Stock Units in Annual Grant

Frances Arnold, a director at Alphabet Inc., received 2,016 Class C Google Stock Units...

NVIDIA Director A. Brooke Seawell Files to Sell $8 Mn in Stock

A. Brooke Seawell, a director at NVIDIA Corporation, has filed to sell 49,131 shares...

Profit-Driven: 4 Proven Cost-Cutting Strategies To Scale Your Business Fast

Profitability is obviously about selling plenty of products and services. It’s also about spending...

Larry Page Trust Files to Sell Alphabet Shares

According to a Form 144 filed with the U.S. Securities and Exchange Commission on...

Alphabet Director L. John Doerr Receives Stock Units in Annual Grant

L. John Doerr, a director at Alphabet Inc., received 2,016 Class C Google Stock Units on July 2 as part of the company’s annual...

NVIDIA CEO Jensen Huang Sells Over $28 Mn in Stock Sales Across Three Days

Jen-Hsun Huang, President and CEO of NVIDIA Corporation, sold more than 225,000 shares of...

Aravind Putrevu on CodeRabbit’s Approach to AI Code Review

Speaking with the TechGraph editorial team, Aravind Putrevu, Director of Developer Marketing at CodeRabbit,...

Mark Zuckerberg Files to Sell Meta Stocks Worth $9.78 Million

Meta Platforms CEO and chairman Mark Zuckerberg has filed a Form 144 with the...

IoT Filters and Compliance in Cleanrooms

In today’s world of consistent quality controlled manufacturing, the people who work inside a...

NVIDIA CEO Jensen Huang Files to Sell $12.2 Million in Stock

NVIDIA Corporation (NASDAQ: NVDA), President & CEO, Jen-Hsun Huang has filed to sell 75,000 shares of the company’s common stock, with an estimated market...

From Function to Fashion: Innovative Trends in Pre-Roll Packaging

The industry continues to flourish with innovation at its core, especially when it comes to pre-roll packaging. With markets expanding and consumer culture evolving, the importance of packaging in differentiating products and brands is more pronounced than ever. No longer just a means to...

Maximizing Sales Performance With Altify Insight Map: A How-To Guide

In the competitive realm of sales, leveraging advanced tools and strategies can significantly improve...

What Does It Take to Run a Manufacturing Business?

Running a manufacturing business demands strategic planning, robust infrastructure, and continual adaptation to market...

How is AI being used to detect unusual customer behavior & fraudulent transactions in real-time?

In an era of hyper-digital transactions and global commerce, it has been more difficult...

Ankur Vij of Techjockey on B2B Software Buying Shifts, AI Trends, and Market Expansion

In a conversation with TechGraph, Ankur Vij, Senior Vice President of Business Growth at...

US Senate rejects bid to limit Prez. Trump on Iran Strikes

The Republican-led U.S. Senate on Friday rejected a Democratic-led effort to block President Donald...

Indian Economy Stays Strong: 6.5% Growth, Inflation at 6-Year Low

India’s economy maintained robust momentum in FY25, with real GDP rising by 6.5%, according...

Consumer Expectations vs. Delivery Reality: The Real Challenges of Food Delivery Platforms

Getting food delivered at the doorstep has completely changed how people eat and live....

Why data breaches are getting costlier in India

A data breach occurs when unauthorized individuals gain access to confidential or sensitive information,...

Nvidia CEO Jensen Huang Files to Sell $7.35 Million in Stock

Nvidia Corporation, CEO and President Jensen Huang has filed a notice with the U.S....

Mark Zuckerberg Files to Sell Meta Stocks Worth $9.78 Million

Meta Platforms CEO and chairman Mark Zuckerberg has filed a Form 144 with the...

The Most Overlooked Car Issues That Lead to Costly Repairs Later

Owning a vehicle comes with a myriad of responsibilities, often involving regular maintenance to...

Construction Jobs Expo 2025: RDS Arena, Dublin, Ireland

If you look at the statistics for recent years, you can see that the...

Navigating the Complexities of EV Fleet Financing and Leasing Options in India

As India's transportation sector accelerates towards electrification, the shift from internal combustion engine (ICE)...

Leading Through Uncertainty: Lessons from Building in a Rapidly Evolving Tech Landscape

In the enterprise tech space, uncertainty is no longer the exception—it is the status...

IoT Filters and Compliance in Cleanrooms

In today’s world of consistent quality controlled manufacturing, the people who work inside a...

Why data breaches are getting costlier in India

A data breach occurs when unauthorized individuals gain access to confidential or sensitive information,...

Intel Report: Iran’s Nuclear Progress Delayed but Not Destroyed by US Strikes

A day after the ceasefire between Israel and Iran, striking revelations have emerged from...

Nvidia CEO Jensen Huang Files to Sell $7.35 Million in Stock

Nvidia Corporation, CEO and President Jensen Huang has filed a notice with the U.S....