Airbus 2015 Annual Report Download - page 82

AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 50 l
Informationon GroupActivities
1.1 Presentation of the Group
1.1.8 Legal and Arbitration Proceedings
AirbusGroup is involved from time to time in various legal
and arbitration proceedings in the ordinary course of its
business, the most significant of which are described below.
Other than asdescribed below, AirbusGroup is not aware of
any significant governmental, legal or arbitration proceedings
(including any such proceedings which are pending or
threatened), during a period covering at least the previous
twelve months which may have, or have had in the recent past
significant effects on the Company’s or the Group’s financial
position or profitability.
Regarding AirbusGroup’s provisions policy, AirbusGroup
recognises provisions for litigation and claims when (i)it
has a present obligation from legal actions, governmental
investigations, proceedings and otherclaims resulting from
past events that are pending or may be instituted or asserted
in the future against the Group, (ii)it isprobable that an outflow
of resources embodying economic benefits will be required to
settle such obligation and (iii)a reliable estimate of the amount of
such obligation can be made. Although AirbusGroup believes
that adequate provisions have been made to covercurrent or
contemplated general and specific litigation and regulatory
risks, no assurance can be provided that such provisions will
be sufficient.Forthe amount of provisions for litigation and
claims, please refer to the “—Notes to the IFRS Consolidated
Financial Statements — Note22: Provisions, contingent assets
and contingent liabilities”.
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. The EU has cited the failure by the US to
implement the findings prior to the due date of 23September
2012 in commencing a new proceeding on the adequacy of
US compliance.
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.
Financial Statements 2015
11 22 33 44 55
QRegistration Document 2015
Annual Report 2015 Financial Statements 2015