AIR Airbus SE

   By Chester Tay 
 

AirAsia Group Bhd. (5099.KU) executives Tony Fernandes and Kamarudin Meranun are temporarily relinquishing their roles at the Malaysian budget carrier pending an inquiry into an alleged bribery case involving Airbus SE (AIR.FR).

AirAsia said in a stock exchange filing late Monday that Mr. Fernandes, previously chief executive, and Mr. Meranun, previously executive chairman, would be redesignated nonindependent, nonexecutive board members.

Both men will remain as advisers, the airline said.

Tharumalingam Kanagalingam, formerly deputy chief executive, has been appointed acting CEO.

AirAsia also said it has formed a committee to review allegations of bribery involving Airbus and the airline.

Prosecutors and officials in the U.S., U.K. and France last week released allegations that Airbus made illicit payments for years to intermediaries to secure contracts for its planes and other products. British prosecutors said two AirAsia executives were among the benefactors of those payments.

AirAsia has denied any wrongdoing. Airbus has settled with prosecutors in a EUR3.6 billion ($3.98 billion) deal.

Shares in AirAsia fell 4.7% in morning trade, one day after they plunged more than 10% on news of the allegations.

Write to Chester Tay at chester.tay@wsj.com

(END) Dow Jones Newswires

February 03, 2020 21:12 ET (02:12 GMT)

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