Noël Forgeard, the former co-chief executive of EADS, has been held for a second day of questioning in the criminal investigation into insider dealing at the Franco-German aerospace and defence group.

Under French law, Mr Forgeard will either have to be released by 11am on Friday, called to a follow-on meeting with investigating magistrates or placed under formal investigation for alleged wrongdoing.

He is the first of 17 current and former executives of EADS and its Airbus subsidiary to be questioned by police in the inquiry into share dealing in the months ahead of the group's surprise profits warning in June 2006. All parties deny any wrongdoing.

The decision to detain Mr Forgeard for 48 hours comes at a delicate time for EADS and Airbus, where management is struggling to maintain its credibility while implementing a painful job cuts programme.

Among those under investigation are Thomas Enders, Airbus' chief executive, and Fabrice Bregier, his second in command. They too are expected to be called in for questioning in the coming weeks.

In April, France's stock market watchdog published the findings of its own two-year investigation into the share deals. It alleged the 17 executives had sold shares for a total profit of €20m ($31m) while in the possession of what it has defined as privileged information, in particular a business plan highlighting a possible decline in Airbus profitability that was prepared in June 2005.

However, it has also said some may not have been aware that the information should have been regarded as privileged. EADS has rejected the AMF's findings.

Mr Forgeard has always insisted on his innocence. The former Airbus boss was ousted from the aircraft group in June 2006 after the profit warning and has drawn widespread public criticism for his part in the bloody management battle that many blame for the group's current woes.