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Airbus considers legal action against Germany over Saudi ban: sources

 

FILE PHOTO: The Airbus logo is pictured at Airbus headquarters in Blagnac near Toulouse, France, March 20, 2019. REUTERS/Regis Duvignau/File Photo

 

BERLIN (Reuters) - Airbus is considering suing the German government as its freeze on arms exports to Saudi Arabia means the company is unable to complete a border security system for the Gulf state, two people familiar with the matter said.

 

In October, Germany decided to reject future arms exports licenses to Saudi Arabia over the killing of journalist Jamal Khashoggi, and to freeze deliveries of already approved equipment - a move that infuriated allies and defense companies.

 

Airbus is looking at taking legal action against Berlin over the security system for the border between Saudi Arabia and Yemen - a contract worth some 3 billion euros ($3.36 billion), of which around 1 billion euros remains open, the sources said.

 

"We are looking at an action for failure to act," said one source familiar with the matter, speaking on Sunday on condition of anonymity. "We want to force the federal government to decide now."

 

Airbus declined to comment.

 

The German government has said it could not comment on any potential corporate compensation claims as a result of the Saudi arms export ban until any materialize.

 

It was not immediately clear where in Germany or when any lawsuit would be filed.

 

In late March, Germany extended the ban on arms exports to Saudi Arabia until the end of September, with a few exceptions.

 

The border system for Saudi Arabia consists of radars, drones and command posts for guards.

 

"We are not talking about an offensive weapon here, but about a border security system," the source said.

 

Airbus, which had to make risk provisions of 300 million euros due to non-completion of the contract, feels an obligation to take legal action to show its customers, shareholders and suppliers that it is doing everything it can to complete the contract, the source said.

 

In February, company sources told Reuters that Airbus had decided to redesign the C295 military transport aircraft it builds in Spain to remove German components following Germany's freeze on arms exports to Saudi Arabia.

 

(Reporting by Sabine Siebold and Tim Hepher; Writing by Paul Carrel; Editing by Frances Kerry)

 

-- © Copyright Reuters 2019-05-06

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[zydeco]

You veeel O-Bey your orders, Airbus, or else!

[Tug]

Blood money

[stevenl]

32 minutes ago, zydeco said:

You veeel O-Bey your orders, Airbus, or else!

Ludicrous post.

[Blackheart1916]

I thought Airbus was French?

[300sd]

Congratulations, Germany, for standing up to SA. It's a huge shame that you are mostly on your own. Any chance you could have a look at China? 

[Proboscis]

8 hours ago, Tug said:

Blood money

Please explain

[Proboscis]

6 hours ago, Blackheart1916 said:

I thought Airbus was French?

Airbus is European - with factories in UK, France, Germany, . . . . 

[Baerboxer]

3 hours ago, 300sd said:

Congratulations, Germany, for standing up to SA. It's a huge shame that you are mostly on your own. Any chance you could have a look at China? 

 

Shame they didn't stand up to VW and Audi with their international frauds; or prevent widespread bribery by Siemens in some markets.

 

Government hypocrisy - the hallmark of Western democracies.

[from the home of CC]

Germany and Canada, glad someone is standing up to these dress wearing mass murderers..

[Jaggg88]

  9 hours ago, 300sd said:

Congratulations, Germany, for standing up to SA. It's a huge shame that you are mostly on your own. Any chance you could have a look at China? 

 

'Shame they didn't stand up to VW and Audi with their international frauds; or prevent widespread bribery by Siemens in some markets.

 

Government hypocrisy - the hallmark of Western democracies.'

 

Recently, when China dumped steel at cost price on the Euro market the steel industry collapsed in most countries including Italy and UK. The German steel industry was unaffected as they had 'vertical' agreements to exclusively supply German companies with steel. The EU rules state that companies must buy from the cheapest supplier!  EU rules state that local authorities must buy from the cheapest supplier but Germany gets around this by making local by-laws (unaffected by EU regulations) that forces local authorities to buy only from German companies within a 50 km radius of their town hall. When VW-Audi group was going under miraculously Porsche group came up with the money to buy them. Porsche were a tiny company and could only arrange the massive finance needed by getting Government guarantees (illegal under EU rules). Hypocrisy is not a strong enough word to describe the German Government. 

[sandrabbit]

9 hours ago, Baerboxer said:

 

Shame they didn't stand up to VW and Audi with their international frauds; or prevent widespread bribery by Siemens in some markets.

 

Government hypocrisy - the hallmark of Western democracies.

and a shame that in the 80's they helped build chemical weapons factories in Iraq

[bandabebo]

The German steel industry was unaffected as they had 'vertical' agreements to exclusively supply German companies with steel.

[ravip]

On 5/6/2019 at 12:00 PM, Baerboxer said:

 

Shame they didn't stand up to VW and Audi with their international frauds; or prevent widespread bribery by Siemens in some markets.

 

Government hypocrisy - the hallmark of Western democracies.

Thank you for a post with 100% truth, which is very rare and many find it very difficult to accept.

[bristolboy]

On 5/6/2019 at 1:30 PM, Baerboxer said:

 

Shame they didn't stand up to VW and Audi with their international frauds; or prevent widespread bribery by Siemens in some markets.

 

Government hypocrisy - the hallmark of Western democracies.

First off, you'd have to show that Germany was complicit in VW and Audi frauds and bribery by Siemens. And even if that were the case, are you saying it would be preferable for Germany to be hypocritical 100% of the time?

[Scott]

Bickering, off-topic posts and replies removed.

 

[Isaanbiker]

On 5/6/2019 at 7:28 PM, Jaggg88 said:

  9 hours ago, 300sd said:

Congratulations, Germany, for standing up to SA. It's a huge shame that you are mostly on your own. Any chance you could have a look at China? 

 

'Shame they didn't stand up to VW and Audi with their international frauds; or prevent widespread bribery by Siemens in some markets.

 

Government hypocrisy - the hallmark of Western democracies.'

 

Recently, when China dumped steel at cost price on the Euro market the steel industry collapsed in most countries including Italy and UK. The German steel industry was unaffected as they had 'vertical' agreements to exclusively supply German companies with steel. The EU rules state that companies must buy from the cheapest supplier!  EU rules state that local authorities must buy from the cheapest supplier but Germany gets around this by making local by-laws (unaffected by EU regulations) that forces local authorities to buy only from German companies within a 50 km radius of their town hall. When VW-Audi group was going under miraculously Porsche group came up with the money to buy them. Porsche were a tiny company and could only arrange the massive finance needed by getting Government guarantees (illegal under EU rules). Hypocrisy is not a strong enough word to describe the German Government. 

Guess why?