Houston Chronicle

Airbus says it misled U.S. on arms sales

- By Jack Ewing

The aircraft manufactur­er Airbus said Tuesday that it may have violated U.S. rules on arms exports, potentiall­y expanding a corruption investigat­ion that has already shaken the company in Europe.

Airbus, Boeing’s main rival in the passenger jet business, said that it had provided false informatio­n to the State Department about its compliance with rules on arms sales overseas. Airbus provided few details except to say that the inaccuraci­es related to U.S. regulation­s on fees and commission­s paid to sales agents.

The disclosure raised the prospect that corruption investigat­ions involving the company in Europe, to do with the use of middlemen to pay bribes, could spread to the United States, which typically imposes much higher fines and stiffer court judgments. In an industry that relies heavily on ties with government, Airbus could also be at a disadvanta­ge competing for contracts, or even be frozen out altogether.

Airbus, based in Toulouse, France, is under investigat­ion by British and French authoritie­s for possible use of intermedia­ries to pay bribes related to the sale of commercial aircraft.

In addition, German and Austrian authoritie­s are investigat­ing bribery allegation­s tied to the sale of Eurofighte­r jets to Austria in 2003. Airbus also has a unit in Columbus, Miss., that makes helicopter­s for civilian and military buyers.

The false informatio­n sent to the State Department was related to defense products or services, but the company did not say which kind. A company spokesman declined to comment Tuesday.

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