AirAsia X: We never asked for personal favours from Rolls-Royce

AirAsia X has denied allegations that it sought personal favours or gratification from jet engine manufacturer Rolls-Royce PLC.

"AirAsia X, its directors and officers have never sought personal favours or gratification from Rolls-Royce other than to negotiate for the best possible commercial and financial terms for the benefit of the company," the airline said in a filing with Bursa Malaysia today.

Meanwhile sister company AirAsia Bhd, in a separate filing, said it has never had dealings with Rolls-Royce.

AirAsia X and AirAsia Bhd are both banded together under the AirAsia Group umbrella.

It was reported that UK's Serious Fraud Office (SFO) had named AirAsia Group as one of several foreign parties involved in bribery cases with jet engine manufacturer Rolls-Royce PLC.

The bribery in the AirAsia deal was one of 12 charges brought against Rolls-Royce after a four-year investigation into its dealings with clients in Indonesia, Thailand, India, Russia, China and Malaysia.

According to the Statement of Facts filed with the Crown Court at Southwark, Rolls-Royce failed to prevent its employees from providing an AirAsia Group executive with credits worth US$3.2 million (RM14.2 million) for the maintenance of a private jet.

AirAsia X in its statement today said the transaction involving the jet had gone through the "due approval process" and received approval from its audit committee, and board of directors.

It was also recommended to its shareholders for approval during its general meetings in 2014, 2015 and 2016, and were also disclosed in AirAsia X' initial public offering prospectus prior to the meetings.

AirAsia X was listed on July 10 2013.

The UK documents stated that on July 8, 2013, three contractual documents were signed between Rolls-Royce and AirAsia X, including the Supplemental Financial Assistance Agreement which made reference to the US$3.2 million of credits.

However, none of the documents mentioned that the credits would be used for the private jet.

It said by late November 2013, the credits were transferred by the AirAsia X senior employee to the company which was the vehicle through which the AirAsia Group executive and other private individuals owned the jet.

The document said the credits for the private jet used by the AirAsia group executive was solicited through an AirAsia X senior employee in 2011.

It also alleged that there was an attempt to conceal the fact that the credits, given to AirAsia X in 2013, would be used for the the private jet, which was unrelated to the AirAsia Group.

The document did not name who the AirAsia Group executive was.

In June last year, AirAsia Bhd reportedly purchased a Bombardier BD-700-1A10 Global Express which had been used by AirAsia Bhd executive chairperson Kamarudin Meranun and group chief executive officer Tony Fernandes since 2012.

The private jet was purchased from Caterhamjet Global Ltd (CJG), a company in which Kamaruddin and Fernandes held a 18.56 percent indirect stake and is also a member of the Tune group.--Mkini