The co-chief executive of Airbus parent company EADS ruled out resigning as he gave testimony to French lawmakers Wednesday, legislators said, despite management turmoil stemming from delays to the superjumbo A380 and suspiciously timed stock sales.
More than one deputy present during the closed-door hearings said Noel Forgeard called it "out of the question" that he step down.
Forgeard - whose job may be on the line in a pending shakeup - is under mounting pressure over his sale of stock in European Aeronautics Space and Defence Co. weeks before it announced delays in the A380 that angered airlines and rattled the market.
He was summoned by a parliamentary committee in the National Assembly, France's lower house, looking into stock sales by Forgeard and five other EADS managers. Forgeard insists that the March sale - in which he made 2.5 million euros ($3.1 million) - was an "unfortunate coincidence" and not the result of insider information.
Lawmakers said after the meeting that Forgeard had given a confident performance when responding to questions about management problems at EADS and Airbus.
Governing UMP party lawmaker Pierre Menieri said, however, that "the doubts remain" regarding the share sales. Still, he said lawmakers were most concerned about the future of EADS and its jobs.
Fellow UMP lawmaker Patrick Ollier said the French market watchdog, known by its French acronym AMF, should be allowed to complete its investigation before conclusions are drawn.
"It is for the AMF to decide, not for us," Ollier said.
The AMF is investigating the timing of the share sales and seeking to determine whether EADS informed investors as soon as it was aware of the delays.
Opposition Socialist deputy Henri Emanuelli said the party would press ahead with demands for a full parliamentary inquiry into mismanagement at EADS, but stopped short of leveling personal accusations against Forgeard.
EADS shares plunged 26 percent on June 14 after the company announced the A380 delays and said the production hitches would shave 2 billion euros ($2.5 billion) off profit over four years. EADS controls Airbus via an 80 percent stake.
The announcement and revelations of the stock sales prompted calls for a change in the leadership of European defense giant EADS, which is run jointly by French-German management.
French Finance Minister Thierry Breton said Tuesday management changes at EADS are "in the process of being finalized." He indicated that France had dropped earlier demands to change the delicate Franco-German balance of the company.
EADS shares fell 2.6 percent to 21.50 euros ($27.02) in Paris trading.
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