THE Secret Airbus Deal

THE BOSS IS PROTECTED In 1995, the fifth estate interviewed the President of Airbus Industrie Bernard Lathière about a secret deal his company had made . Watch clip.	THE SECRET DEAL In 1995, the fifth estate revealed how Airbus Industrie had negotiated a secret deal to pay commissions to German-Canadian business man Karlheinz Schreiber for the sale of its planes in Canada. Watch clip.	THE INSIDER TALKS In 1995, the fifth estate interviewed Giorgio Pelossi, Karlheinz Schreiber's accountant, after the two of them had had a falling out over money. Watch clip.

PELOSSI ON FRANK MOORES In 1995, the fifth estate interviewed Giorgio Pelossi, Karlheinz Schreiber's accountant. He responds to Frank Moores' assertion that he was not lobbying on behalf of Airbus Industrie. Watch clip.	QUESTIONS FOR FRANK MOORES In 1995 the fifth estate approached Frank Moores with questions about his role as a lobbyist working for Airbus Industrie. Watch clip.	FRANK MOORES AND AIRBUS Former Newfoundland Premier and Ottawa lobbyist Frank Moores writes to the chairman of Airbus Industrie about the sale of Airbus airplanes to Air Canada. See document.

THE CONTRACT The fifth estate has obtained a copy of the secret deal between IAL, the company owned by Karlheinz Schreiber, and Airbus Industrie. See document.

By 1988, Air Canada was ready to make an unprecedented purchase: 1.8 billion dollars for 34 airbus airplanes.

At the time, friends cultivated by German-Canadian businessman Karlheinz Schreiber were close to the people who were running the country. Former Newfoundland Premier Frank Moores, who helped Brian Mulroney on his way to power, was the leading lobbyist in Ottawa. Allegations surfaced that the political veteran turned lobbyist, Moores, was working for Airbus and using his influence to sell the planes to Air Canada. Moores had become a target for opposition charges of cronyism and corruption.

“This is a 1.5 billion dollar contract we are talking about,” said Brian Tobin, at the time in opposition government. “The people of Canada have a right to have questions asked and answers given by a minister without bluster or false outrage.” The government bristled at the suggestion. “The Honorable Member is insinuating, he is trying to set an innuendo,” responded John Crosbie, at the time Minister of Transport in the Mulroney government. “[Tobin has been] thoroughly unscrupulous in his approach.”

But, what the opposition didn’t know was potentially more explosive than their wildest speculation. Karlheinz Schreiber had a secret deal with Airbus. If Air Canada bought its planes while the Mulroney government was in power, Airbus would pay Schreiber nearly 20 million dollars in “grease money” to pay to people he felt helped to make it happen -- people like the lobbyist, Frank Moores.

In 1988, Air Canada bought 34 planes from Airbus. For Karlheinz Schreiberand Frank Moores, it was payday and party time. “Oh he was happy,” Schreiber told the CBC in a new interview. “We were all very happy.”

Next: The Cash Payments