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Last Updated: Tuesday, 27 June 2006, 06:07 GMT 07:07 UK
EADS boss waits to hear his fate
EADS co chief Noel Forgeard
Mr Forgeard has come under fire for his handling of the crisis
The fate of Airbus parent EADS's co-chief executive hangs in the balance as a deadline looms for the aerospace giant to resolve its management crisis.

Reports claim shareholders will call for Noel Forgeard to quit his post in proposals they are to put forward to the French government.

Paris has set a Tuesday deadline for proposals to remedy EADS' problems.

President Jacques Chirac has promised changes, following Airbus's warnings of production delays for its A380 planes.

Despite acknowledging that the firm has "management problems", he has nonetheless stopped short of criticising senior executives.

Mr Forgeard's position came into question after it emerged he had sold EADS shares just weeks before the A380 delays came to light.

He has denied any wrongdoing, but French authorities are now investigating the sales.

Meanwhile, his handling of the announcement of the A380 delays has also been questioned.

Shake-up plans

Analysts expect shareholders to call for an end to the dual management team at the firm. The structure - which features two chief executives and two chairmen from France and Germany - is widely thought to be inefficient.

Commentators expect Mr Forgeard to be squeezed out, with his German counterpart Tom Enders becoming sole chief executive of the group.

Meanwhile, reports suggest Louis Gallois, the French railways head who ran former state aviation firm Aerospatiale - a founder member of the EADS consortium - could step in as the sole chairman.

EADS has been feeling the pressure since announcing further production delays for its new A380 super jumbo aircraft earlier this month - a development that would lead to $2bn in lost earnings by 2010.

On Monday a group of investors also turned the screws on the group by launching a "class action" style sued in France seeking $10bn in damages over delays to the flagship plane's deliveries.


SEE ALSO
Woes continue at embattled EADS
20 Jun 06 |  Business
Airbus faces further A380 hitch
13 Jun 06 |  Business
Airbus confirms super-jumbo delay
01 Jun 05 |  Business

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