Airbus parent to hold crisis board meeting

The board of Airbus parent firm EADS will meet later today and could discuss the future of French co-chief executive Noel Forgeard…

The board of Airbus parent firm EADS will meet later today and could discuss the future of French co-chief executive Noel Forgeard, French industry Minister Francois Loos said today.

He was answering a question over whether Mr Forgeard still had some authority left in the crisis-stricken company, which was hit by a steep fall in its shares last week after issuing a profit warning.

Airbus, which is 80-per cent owned by EADS, last week slashed its forecast for deliveries of its flagship A380 superjumbo in 2007-09. The delay forced parent EADS to lower its outlook on profits through 2010, and investors responded by slicing a quarter off EADS's market value.

Mr Forgeard is under pressure after acknowledging that the company knew internally about a risk of delay in the €12 billion ($15.20 billion) project as early as April, though it did not make the problem public until last week.

READ MORE

Mr Forgeard has also been criticised by shareholder activists who have demanded an investigation into his personal sale of EADS shares in March, not long before he said there were indications of the delay, which triggered a profit warning from EADS last week.

Delay in the project is being blamed on complicated wiring needed to support in-flight entertainment and other systems on the mammoth 850-seat planes.

Le Figaronewspaper reported

today that the EADS board would meet in Munich today morning to discuss what had happened.

EADS shares in Paris were up 1.9 per cent at €20.28 this morning.