CVC probes Airbus for unfair business practices

New Delhi: India's topmost anti-corruption body, the Central Vigilance Commission has begun a probe against European aviation giant Airbus for indulging in alleged unfair business practices.
The CVC has registered a complaint it received from Hyderabad based Flyington Freighters that charged EADS Airbus with non delivery of aircraft resulting in loss of business to the company. The firm has been demanding action against the aviation firm under the Competition Act.
It charges Airbus for using its order for 12 A-330-200 cargo aircraft to pitch for the USAF tanker contract and then delay its deliveries by three years.
EADS North America first bagged the contract in early 2008 proposing a tanker variant of the A-330. The orders were cancelled that year and fresh tenders were floated.
Flyington says Airbus was depending on its proposed production line in Mobile, Alabama to supply aircraft to the Hyderbad firm. The new production facility however did not materialize owing to the restarting of the USAF deal.
06/12/10 Sandeep Unnithan/India Today

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Categories: Cargo Dec 2010, Foreign Dec 2010