Forgeard Fallout
June 2nd, 2008
The arrest and questioning of former head honcho at EADS, Noel Forgeard comes as a completely anti-climatic event.
Investigations being conducted by the French regulatory body, AMF, have made what is likely to be the first of many arrests in this epic saga of who knew what, when they knew it, how they traded in stock for their self gain - all amidst the turmoil of the A380 being delayed due to the sheer incompetency of the Franco-German partners under Forgeard’s watch.
Since the painful birth of EADS back in 2000, the relationship between the French and German partners has been volatile as each seeks to undermine the other in its quest to rein in control over the company. One only need to look at the wisdom behind the “dual-CEO” management approach to see that this was a wedding strewn with marital discord from the outset.
Yet the legacy of those early years is what will ultimately unravel the mysteries of the share dealing allegations.
Il n’était pas moi!
Image courtesy of Spiegel
Forgeard has made no secret that he won’t face the music alone. While denials and “no comments” from former colleagues Tom Enders, John Leahy and Manfred Bischoff are expected, equally, it is almost certain that these and other individuals will be questioned by the AMF.
Who else will Forgeard name in this investigation? What lengths will he go to exonerate himself at the expense of others?
As an American citizen, Leahy runs the added risk of the U.S Department of Justice stepping in if he is implicated. This corporate uncertainty arrives at a time when Airbus has yet again publicly sought taxpayer money to protect jobs for the A350XWB and when getting credit on the open market is much harder to do. With Lehman Brothers analyst Joe Campbell slamming EADS as a “liability“, confidence for the company is likely to drop further before any meaningful rebound can be seen.
Without funding, the A380 debacle is one that may just be the undoing of the A350 - and that’s a project Airbus simply cannot afford to be late with.
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Entry Filed under: Air Transport, Air Travel, Airbus, Airbus A350XWB, Airbus A380, Airlines, Airplane, Airplane Order, Airplanes, Airport, Airports, Aviation, Boeing, Boeing 777, Boeing 787, Dreamliner, EADS, Farnborough Air Show 2008, Travel
3 Comments Add your own
1. Go-ing | June 2nd, 2008 at 12:53 pm
Enders will be gone for sure. His position has been untenable for a while now.
Leahy may just evade capture…
2. Jacobin777 | June 2nd, 2008 at 2:59 pm
I agree with “Go-ing”, I think Leahy will somehow get out of this.
What’s more interesting however is what will happen with the “Tanker Contract” if EADS hits up the European Govt. for A350XWB “launch aid”….
3. Sandy | June 3rd, 2008 at 10:08 pm
The very idea of senior managers determining when to buy and sell their own shares is madness. If they want to sell they should have to wait at least 6 months, and preferably a year, before sell requests are actioned. This would prevent just this sort of accusation.
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