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French aircraft executive defends share sale

Noel Forgeard, the French co-chairman of Airbus parent EADS, leaves the Europe-1 radio station in Paris yesterday. PHOTO: AP

The embattled French co-CEO of Airbus parent European Aeronau-tics and Defense Space Co (EADS) yesterday defended his sale of shares in the company before delays in the superjumbo A380 sent stock tumbling, calling it an "unfortunate coincidence."

Noel Forgeard also sought to play down the importance of a costly production backlog affecting the world's largest passenger plane.

"It's a glitch," Forgeard said on Europe-1 radio. "All aircraft programs have suffered delays."

Wiring problems with the much-touted double-decker A380 announced this week incensed airlines worldwide and ballooned into a debacle prompting questions about the leadership of EADS, a European project jointly run by French-German management.

One key question surrounds large stock sales by Forgeard, three of his children and other top EADS managers in mid-March.

"We were not aware, not the shareholders, not the directors" of the A380's problems at that point, Forgeard said. He said the troubles with the A380 surfaced in April, and that late last month they still seemed surmountable.

EADS' stock plummeted 26 percent on Wednesday after the announcements of the delay and a profit warning. The stock price rallied slightly yesterday, but remained well below prices in March, when Forgeard exercised US$3.1 million worth of options at US$40.21, and three of his children each sold US$1.75 million worth of shares at the time at US$41.23, according to the French stock market regulator AMF. Board members Francois Auque and Jean-Paul Gut also sold shares.

The stock sale was "an unfortunate coincidence," Forgeard said on Europe-1. "I have nothing to hide."

He noted that he exercised only half his stock options in the deal, and that it was announced publicly at the time.

"If I had had the slightest privileged information, I would not have sold the shares," he said.
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