Airbus 2015 Annual Report Download - page 260

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 78 l
Notes to the IFRSConsolidatedFinancialStatements
2.8 Other Notes
WTO
Although AirbusGroup is not a party, AirbusGroup is supporting
the European Commission in litigation before the WTO. Following
its unilateral withdrawal from the 1992 EU-US Agreement
on Trade in Large Civil Aircraft, the US lodged a request on
6October 2004 to initiate proceedings before the WTO. On
the same day, the EU launched a parallel WTO case against
the US in relation to its subsidies to Boeing. On 19December
2014, the European Union requested WTO consultations on the
extension until the end of 2040 of subsidies originally granted
by the State of Washington to Boeing and other US aerospace
firms until 2024.
On 1June 2011, the WTO adopted the Appellate Body’s final
report in the case brought by the US assessing funding to
Airbus from European governments. On 1December 2011, the
EU informed the WTO that it had taken appropriate steps to
bring its measures fully into conformity with its WTO obligations,
and to comply with the WTO’s recommendations and rulings.
Because the US did not agree, the matter is now under WTO
panel review pursuant to WTO rules.
On 23March 2012, the WTO adopted the Appellate Body’s final
report in the case brought by the EU assessing funding to Boeing
from the US. On 23September 2012, the US informed the WTO
that it had taken appropriate steps to bring its measures fully
into conformity with its WTO obligations, and to comply with
the WTO’s recommendations and rulings. Because the EU did
not agree, the matter is now under WTO panel review pursuant
to WTO rules.
Exact timing of further steps in the WTO litigation process is
subject to further rulings and to negotiations between the US
and the EU. Unless a settlement, which is currently not under
discussion, is reached between the parties, the litigation is
expected to continue for several years.
GPT
Prompted by a whistleblower’s allegations, AirbusGroup
conducted internal audits and retained PricewaterhouseCoopers
(“PwC”) to conduct an independent review relating to GPT
Special Project Management Ltd. (“GPT”), a subsidiary that
AirbusGroup acquired in 2007. The allegations called into
question a service contract entered into by GPT prior to its
acquisition by AirbusGroup, relating to activities conducted
by GPT in Saudi Arabia. PwC’s report was provided by
AirbusGroup to the UK Serious Fraud Office (the “SFO”) in
March2012. In the period under review and based on the work
it undertook, nothing came to PwC’s attention to suggest that
improper payments were made by GPT. In August2012, the SFO
announced that it had opened a formal criminal investigation into
the matter. AirbusGroup is cooperating fully with the authorities.
Eurofighter Austria
In March2012, the German public prosecutor, following a request
for assistance by the Austrian public prosecutor, launched
a criminal investigation into alleged bribery, tax evasionand
breach of trust by current and former employees of EADS
DeutschlandGmbH (renamed on 1July 2014 Airbus Defence
and SpaceGmbH) and Eurofighter JagdflugzeugGmbH as well
as by third parties relating to the sale of Eurofighter aircraft to
Austria in 2003. After having been informed of the investigation
in 2012, AirbusGroup retained the lawfirm Clifford Chance to
conduct a fact finding independent review. Upon concluding
its review, Clifford Chance presented its fact finding reportto
AirbusGroup in December2013. AirbusGroup provided the
reportto the public prosecutors in Germany.AirbusGroup is
cooperating fully with the authorities.
Other Investigations
Following the announcement of investigations by the Romanian
authorities relating to the border surveillance project in Romania
in mid-October 2014, Airbus Group confirms that Airbus
Defence and SpaceGmbH has been informed that the German
prosecution office is also investigating potential irregularities in
relation to this project, a project in Saudi Arabia and a project
of Tesat-SpacecomGmbH & Co. KG. The public prosecutor
in Germany has launched administrative proceedings in
the context of those investigations against Airbus Defence
and SpaceGmbH and Tesat-SpacecomGmbH & Co. KG.
AirbusGroup is cooperating fully with the authorities.
Public prosecutors in Greece and Germany launched
investigations into a current employee and former Managing
Directors and employees of Atlas ElektronikGmbH, a joint
company of ThyssenKrupp and AirbusGroup, on suspicion of
bribing foreign officials and tax evasion. The public prosecutor
in Germany has launched an administrative proceeding
for alleged organisational and supervisory shortfalls. The
authorities in Greece have launched civil claims against Atlas
ElektronikGmbH. In 2015 the public prosecutor´s office in
Bremen launched another investigation into current and former
employees and Managing Directors of Atlas ElektronikGmbH on
suspicion of bribery and tax evasion in connection with projects
in Turkey. With the support of its shareholders, the Company is
cooperating fully with the authorities and in consultation with
the public prosecutor is assisting the further clarification of the
matter through its own internal investigation.
Commercial Disputes
In May2013, the Group has been notified of a commercial
dispute following the decision taken by the Group to cease a
partnership for sales support activities in some local markets
abroad. The Group believes it has solid grounds to legally object
to the alleged breach of a commercial agreement.However,
the consequences of this dispute and the outcome of the
Financial Statements 2015
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QRegistration Document 2015
Annual Report 2015 Financial Statements 2015