KUALA LUMPUR, Feb 19 — A plan by AirAsia Group chief executive Tan Sri Tony Fernandes for the airline to sponsor a Formula 1 racing team to boost its brand globally was approved by the company’s directors back in 2010, reported The Star.

Citing unnamed sources, the report asserted that the board had given the green light to Fernandes and for amounts in access of US$250 million (RM1.03 billion) to be channeled towards sponsoring the racing team in efforts to make AirAsia a globally recognisable brand.

This is in light of the recent bribery allegations brought against AirAsia by UK’s Serious Fraud Office (SFO) concerning their purchase dealings with aircraft manufacturers Airbus.

The allegations include the airline purchasing planes at bloated prices, and that agreements between AirAsia and Airbus over purchase orders were improperly linked to a sponsorship deal by the aircraft maker towards the now defunct racing team which was jointly owned by Fernandes and his executive chairman Datuk Kamarudin Meranun.

Both Fernandes and Kamarudin have since relinquished their positions within the airline for a period of two months to allow an independent probe by the management into the offences that were allegedly committed between 2013 and 2015.

The allegations were made public after it was reported that Airbus and SFO had reached a settlement of around €3.6 billion (RM16.18 billion) with the aircraft manufacturers admitting to bribery across its global business dealings.

Reports included how SFO had accused the AirAsia and AirAsia X executives of receiving the US$50 million (RM207 million) bribe from Airbus as part of the deal to secure an order for 180 aircrafts.

It was reported that official documents also claimed to have revealed that Airbus employees had tried to pay an additional US$55 million (RM228 million) to the AirAsia and AirAsia X’s directors and/or employees but could not do so as there was a freeze on payments to agents and intermediaries on October 2014.

The Star report today detailed that among the documents were emails, which have since been made public, of communications between Airbus and key decision makers of AirAsia and AirAsia X.

The report, quoting its source, claims the released documents showed mismatches between the period when the offences were allegedly committed and the dates that appeared in the corresponding emails.

It claimed some of the emails within the documents were from before 2013 and hence insignificant to the allegations, as it was a period when AirAsia had already secured sponsorship deals from Airbus and involves and amount of US66 million (RM274 million).

Today’s The Star report details how AirAsia and Airbus had in June 2011 announced a US18.2 billion (RM75.7billion) deal for 200 airplanes, with some aviation experts who weighed in said the decision was necessary for the airline while some suggested it was barely sufficient.

The question was then raised whether or not Fernandes had committed any wrongdoing considering Airbus’ recent admittance, or did he overbuy planes for his airline as supposed inducement to secure sponsorship deals from the manufacturer.

It was also suggested by the source that an audit be conducted on the purchase of those planes to establish whether the price paid was fair or overpriced, with external rumours suggesting that AirAsia had paid amounts below the average market price to buy the planes.

“Perhaps Airbus should allow Fernandes to disclose the price of the planes he acquired for the AirAsia group, and compare it to the price Airbus sold its aircraft to other airlines at that time,” suggested the source.

Another factor pointed out in The Star’s report was the inconsistent track record of the SFO, who had levied charges against several big named corporations but have also lost a number of them in court.

Among the cases highlighted was when SFO accused former Tesco executives of being behind a major accounting scandal within the company only to have their case thrown out by a judge last year, who deemed the case too weak to face a jury.

In 2018, SFO also lost their case against Barclays Bank in both the lower and higher courts when their charges surrounding a Qatar fundraising was thrown out.

The report claims that in 2017, UK prime minister Theresa May at during her helm had tried to dissolve the SFO to be absorbed by the National Crime Agency.

Malay Mail is reaching out to AirAsia and AirAsia X for comments.

DickyMe2 they all scared he takes over MAS especially the UNIONS hehe

why you guys are all so negative and jealous of TS Tony just try to understand???? he has done a lot of good things for your country so why need to smear him if you have any shares JUST SELL or do you want to buy cheap so you can make more money????? your comments are really BS get a grip or get out......

why people soooo jealous if make money ........

don't worry will never leave.......

Just dont understand this forum if you cant hold your water dont drink too much same as shares....
I will stick with AirAsia very thankful made nearly 200k on Dividends the last 2years
TSF and gang will come back for sure

Supersaiyan you just talk Utter Rubbish if you don't like AA just get out of it or you waiting to buy more when the price drops.......

Dont understand all this Panic what goes down will come back trust in Management still the best future company....... I will keep holding and investing invest on facts not on fiction

Read somewhere 60000 people die of flu in US in 2019 ........

all sounds good but why share price sooooo low?

waiting for 2.20 YNWA

my goodness what a forum,
all gossip, rumors and fiction, get real guys and produce REAL news and insight lets face it, in the end we all made money from this counter and we will so in the future . So why all this whining?????

graynoize 8 please explain why it is BS ? don't just put shit comments out without substantiating it If you so smart give us detailed explanation for every tweet "????
Waiting for it

every time the same some not so good news and everybody is shaking dont understand why? thanks TSTF for getting the dividend again, second car in a year hehe still buying .....

very tired of this Forum nobody with real Substance or Knowledge all only whining or scared oh share go down oh this or that ...... Shares always go up or down whats the problem ? Just stay coo; if you cant hold dont buy shares go and put your money into FD .....

something is brewing.....

OMV brilliant Company around for a long time good partner Austria go go go

factorrumour haha agree 150% with you all experts Share comes down all jittery that's the market guys if you cant hold dont play......how far its going down i certainly keep on buying just look at the overall Company great potential and He will win

yeahh buy some more .....

buy buy buy

Stupid counter why so lame?

definitely break 1 ????????

disappointing......

JJCHAN as usual always tries to fool people don't fall for his crap, he just trying to buy cheap otherwise he wouldn't be here for donkey years
what a loser........

Shrobin i can't agree more with you i am still up 12 % on total investment so I keep on buying TSTF not finished yet best to come .......

When MH370 was crashed. I am very sure its because of lack of maintenance and also the management's ignorance on safety issue. So I did not allowed any of my family members to fly MAS. Now with Tun back on the helm, i am confident MAS will be in good hands again. I start to worry about Airasia's safety.

What a stupid statement now Tun is repairing the airplanes ........

abcb get lost we will not listen to your stupid propaganda why you still here? just sell all your shares and F O......

PKRPACA another racist!!!! get them OUT of this forum we dont need them

ZEPAN go back to your Destini blog just leave AA alone nobody is interested in your political opinion

everybody has the right to an opinion and vision and if you are wrong apologize adjust and go on thats BUSINESS all i want to see share price going up and make some money and TSTF has delivered so far and will do so in the future

ABCB Tun Mahatir smart otherwise he would have not given the chance to TSTF in the first place He knows how much Air Asia has done for this country in terms of tourism Statistics DONT LIE look it up
Mark my words they will become best friends again .......

All you guys can do is being jealous of somebody who made it AA will be there forever and getting stronger. All you complainers just want to buy cheap ..... no change before election after election still the same .......look at KS5S, SCK82,shpg22, comments racist as ever.....

well i am sure the board made all their money and we left high and dry
Yes we are stupid to invest .... our own doing to trust the management to run the company properly maybe should ask for special meeting to remove the board....
What you guys think?

good article but what does it mean for PDZ ? just dont want to go up

unfortunately we have no real expert in here .... who can analyse properly ....

Richard lee why always rehash old news let this people alone why give so much face who cares about them .....
no updates whats there to update? going down buy more no need to be expert ....

Anybody send some thank you note to Tan Sri count me in hehe

this is not making money for Tony so he is not interested, he doesnt give a sh....t about the Shareholders

Accumulating Phase? go back check the charts
rubbish in this phase since May 2015
only breakout April 2017...
so whats the REAL reason the share doesn't move?? anybody

Please explain
macro headwinds big and tactical investors should stay highly invested but should also take portfolio management steps to better align portfolio to big picture.

words meaning nothing BWC please dont be so bla bla and no I am not ICON 8888 ha ha

is this a con counter? where is the commitment to the shareholders nothing coming I think its time that shareholders speak up we have a right,bad management of the company

well lets hope it moves one day ...... so far quite disappointing

nothing happen here very disappointing

white knight sleeping Management doesnt care about shareholders

richman when is the ex date for the warrants?

kun 1971 since late 2016

still not moving hold for sooooo long

my goodness rehash and rehash really tired of this people in here if you cant stand the heat just get out of it all the blah blah blah every day get a life people if you dont have the money to stay for long term look for other counters....... but please stop whining this and that and why not and so on really tired ....
Just my opinion

my goodness
:05 cent drop everybody speculates gossips and panics what type of investors v

if somebody puts GOD into his name he should be banned immediately
please get this idiot of the forum !!!!

conclusion lets buy some more !!!!!!!!!!!!!!!!! well handled by Pilot....... if you cant afford to stay for the long term well............

4.55 people just buy the last 2 minutes like crazy
Honestly never saw so many stupid comments like today supermx2 will get the Oscar