Airbus fined millions for 1992 arms sale to Taiwan

Breach of contract in Taiwan missile sale to cost Airbus US$128 million

Airbus in hot water over past dealings with Taiwan.

Airbus in hot water over past dealings with Taiwan. (By Wikimedia Commons)

TAIPEI (Taiwan News) — Airbus has been fined €104 million (US$128 million) during arbitration in a case between Matra Défense S.A.S. and Taiwan announced Saturday, reported CNA.

In 1992 Matra Défense, now an Airbus subsidiary, committed a breach of contract by selling arms to Taiwan.

Matra Défense has not yet announced how they will respond to this arbitration fine nor give details of the case.

The arms sale took place while President Francois Mitterand was in office in the early 1990s at the same time that several corruption allegations have been made, said Reuters. An Airbus spokesperson stated however that "this was a commercial dispute and not a corruption allegation."

This week Airbus also announced that 184 Airbus A320s will be sold to China.

When asked about the Airbus arbitration settlement, Chen Chung-ji (陳中吉), a spokesman for the Ministry of National Defense, said "the ministry has no comment on the matter" and will not comment further on the case, reports CNA.