Asia's largest budget airline AirAsia has denied claims of bribery regarding its purchase planes from aircraft manufacturer Airbus.
AirAsia stated that "vigorously rejects'' allegations of bribery amounting to $50 million in its purchase of 180 planes from European manufacturer Airbus. These claims emerged following Airbus' decision to pay $4 billion in fines to settle accusations of corruption.
Malaysia's anti-graft agency announced that it has started its own investigation into the allegations. The airline's shares declined by as much as 11% following the announcement.
On Monday, AirAsia shares fell to as low as 1.27 Malaysian Ringgit, their lowest level since May 2016, with AirAsia X declining by 12% to hit an all-time low.
Airbus on Friday stated that it had agreed a settlement with French, British and US authorities following lengthy investigations into allegations that it used bribery to sell its planes to airlines.
The European planemaker will pay €3.6 billion, subject to approval by courts in the three countries. The allegations have centered around Airbus' use of middlemen in plane sales. The court hearings in each country are scheduled for January 31.
In a statement, the company said: "Airbus confirms that it has reached agreement in principle with the French Parquet National Financier, the UK Serious Fraud Office and the US authorities."
AirAsia expressed its full cooperation with Malaysia's Anti-Corruption Commission, which partnered with Great Britain's Serious Fraud Office (SFO) to examine the claims.
In a statement, the airline said that all negotiations leading to the purchase of planes had been ''undertaken directly with Airbus on an arm's length basis, and without the involvement of any third parties or intermediaries''.
The controversy will add to the airline's current struggles as it deals with a decline in activity due to fears over the spread of coronavirus. The airline, founded by Tony Fernandes, has announced the suspension of flights between the Philippines and China.
