Airline Wi-Fi provider Panasonic Avionics settles federal corruption case
In-flight Wi-Fi provider Panasonic Avionics (PAC) has agree to settle a bribery case with US authorities and will pay $280 million in penalty charges.
The US government accused Panasonic of employing airline officials as ‘improper’ consultants and then concealed payments made to them.
That violates the Foreign Corrupt Practices Act, the justice department said.
In one case, Panasonic gave a foreign official at a Gulf airline a lucrative consultant job ‘to induce the official to help PAC in obtaining and retaining business from the airline.’
The position ‘required little or no work,’ despite being paid $875,000 over several years and payments were made through a third party.
At the time Panasonic was negotiating two contracts worth $700 million with the unnamed airline.
PAC also paid a consultant who worked for an unnamed US airline who passed on inside nformation about a competitor.
PAC also illegally paid at least 13 sales agents in Asia.
As part of the settlement, PAC parent Panasonic will pay a $137 million criminal penalty and a separate related fine of $143 million to the Securities and Exchange Commission.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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