Karl-Heinz Schreiber: A Master Networker in the Airbus Affair

Strategic Insights -

Karl-Heinz Schreiber, a key figure in the RCMP allegations of million-dollar payoffs in Air Canada's 1988 purchase of Airbus A320s, built his career on expertise in knowing the right people, especially lobbyists and politicians. Schreiber's connections with influential individuals, including former prime minister Brian Mulroney and lobbyist Frank Moores, were instrumental in his prominent role in the Airbus affair and negotiations over two other major federal contracts. The RCMP allege that Schreiber received millions of dollars from European consortium Airbus Industrie to ensure that the aircraft it manufactured were selected by Air Canada, with some of the funds possibly ending up in foreign bank accounts held by Moores and Mulroney.

Key Takeaways:

  • Schreiber, a 61-year-old former German carpet salesman, successfully cultivated senior politicians and industrialists, becoming a go-between in numerous large contracts in Germany before discovering Canada was a lucrative field for German investment in the 1970s.
  • Schreiber befriended former Newfoundland premier and footloose businessman Frank Moores, who became instrumental in the shadowy financing that led to Mulroney's successful 1983 campaign.
  • Schreiber was contracted by Airbus, through intermediary companies he controlled, to be the sales agent for the A320 aircraft in 1985, when Mulroney was prime minister and Moores was a prominent lobbyist in Ottawa.
  • The RCMP allege that commissions from Airbus, Thyssen, and possibly MBB may have ended up in Swiss bank accounts as compensation to Moores and Mulroney for ensuring the government awarded contracts to those firms.
  • Air Canada ruled out a competitive bid from Boeing Co. of Seattle in late 1987, and in mid-1988, the Crown-owned airline made public its selection of 34 Airbus A320s for $1.8 billion.
  • Mr. Schreiber, living in Germany again, has declined to be interviewed by Canadian media.
  • Mr. Moores did lobby for Thyssen and MBB, and Thyssen did not win a federal contract; both Moores and Mulroney deny any involvement in the Airbus contract.

Statistics:

  • Between 1988 and 1993, Schreiber was a constant host and confidante of Bavarian politician Franz Josef Strauss, who was chairman of Airbus.
  • Canada opened its doors to foreign investors and contractors with Mulroney's "Canada, open for business again" slogan.
  • By the early 1980s, Schreiber had befriended Frank Moores, who became instrumental in the shadowy financing that led to Mulroney's successful 1983 campaign.
  • In 1985, Schreiber was contracted by Airbus to be the sales agent for the A320 aircraft.
  • Air Canada selected 34 Airbus A320s for $1.8 billion in mid-1988.
  • The RCMP launched an investigation in 1988 but apparently petered out.

Sources:

  • The Globe and Mail
  • RCMP documents
  • Author Stevie Cameron
  • CBC Television program the 5th estate