Air Transport

EADS's management is facing a prolonged period of uncertainty after France's stock market regulator AMF confirmed that it is expecting an investigation into allegations of insider trading to last at least until the beginning of 2008.

The regulator has confirmed that it has passed an interim report into sales of EADS shares that took place from November 2005 to the public prosecutor at the beginning of September, after French newspaper Le Figaro reported details of the investigation it said came from the memo.

Top EADS executives - including former chief executive Noël Forgeard and major shareholders media group Lagardère and car manufacturer DaimlerChrysler - sold shares before major delays to the A380 programme were made public and EADS issued a profit warning that prompted a plunge in the group's share price.

EADS says it is "most surprised" at the reports. Forgeard, and former EADS co-chairmen Arnaud Lagardère and Manfred Bischoff as well as current Airbus chief executive Tom Enders, have denied all accusations of insider trading.

If the investigation uncovers any wrongdoing among senior managers who still work for EADS the company could face problems with management credibility, just as the recent management shake-up appeared to have steered it back on course, says one London-based analyst. Unions could also react negatively, he says.