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Case 2-4 Ethics and Airbus

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Khongoroo E

on 3 April 2014

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Transcript of Case 2-4 Ethics and Airbus

Airbus is an aircraft manufacturing division of Airbus Group (formerly European Aeronautic Defence and Space Company)

1997, Sabena approved an order of 17 Airbus A320s.
Airlines let Boeing and Airbus compete against each other.
1983 Japanese prime minister charged and convicted for taking bribe.
NSA intercepted faxes between Airbus and Saudi Arabian Airlines.
Both Boeing and Airbus competed for Kuwait.
Bader Mallalah questioned for allegations of embezzlement.

Based in Blagnac, France, a suburb of Toulouse, with production and manufacturing facilities mainly in France, Germany, Spain and the United Kingdom, the company produced 626 airliners in 2013.

Indian Airlines didn’t order from Boeing even with $5 million per plane.
Airbus’s first big sale in North America, Air Canada.
Syrian scandal, airline forced to buy planes.
The middleman’s identity would be kept secret.

Airbus began as a consortium of aerospace manufacturers, Airbus Industrie. Consolidation of European defence and aerospace companies in 1999 and 2000 allowed the establishment of a simplified joint-stock company in 2001, owned by EADS (80%) and BAE Systems (20%). After a protracted sales process BAE sold its shareholding to EADS on 13 October 2006.

Introduction of Airbus Company
Introduction of case's main meaning
Problem and Solution
Updated Information

Case 2-4
Ethics and Airbus
ITBA 4-15
Introduction of Company
Order triggered a raid of Airbus’s headquarters.
1977 congress passed the Foreign Corrupt Practices Act (FCPG).
Frances prime minister hoped to clinch deal, but went home empty.
Kuwait chose Airbus but seemed like Boeing would be chosen.
Chairman, Ahmed al Mishari, was also involved in corruption.

Delhi court ruled, not to buy from Airbus until information was collected.
Middleman, Mr. Schreiber, charged in Germany.
Three people sentenced in Syria and charged $268 million.
Knowing the identity of the middleman is crucial to stopping corruption.

Full transcript