Cathay CEO quits after airline caught in Hong Kong protests

Bloomberg

Cathay Pacific Airways Ltd’s CEO Rupert Hogg resigned, a week after the carrier was rebuked by China for staff involvement in the anti-Beijing protests rocking Hong Kong.
Hogg, 57, quit to take responsibility for the way the airline has responded to recent events, he said in an email to staff obtained by Bloomberg. Hong Kong’s flagship carrier appointed Augustus Tang, 60, as Cathay’s new CEO, according to a statement.
The CEO has been “at the forefront of this crisis and must take responsibility for the way it has been managed,” Hogg said.
“Could we have managed things differently? In hindsight, ‘Yes’.”
The shock exit comes after one of the worst weeks in Cathay’s recent history. The move had added symbolic significance given the historical roots of the Swire Group, the airline’s biggest investor and one of Hong Kong’s great business houses, or hongs.
The airline has emerged as the most visible corporate victim of the political unrest in Hong Kong, with demonstrations against an extradition bill morphing into a full-
scale, months-long pushback against China’s grip on the city.
Cathay is the biggest airline in Hong Kong and its airport, which was shut down earlier this week by protesters, is the carrier’s hub.
After Cathay pilots and attendants took part in strikes and protests, China’s aviation regulator levied a swathe of curbs on the airline, which
is increasingly reliant on mainland traffic. Chinese state-owned firms have started boycotting Cathay, telling their workers not to fly with the carrier. The company was also excoriated by the nation’s biggest bank, sending its shares to a 10-year low.
“This is the right step to repair the relationship with China,” said K Ajith, an analyst at UOB Kay Hian Pte in Singapore who covers the stock. “Someone is taking responsibility — they are acknowledging the importance of China and its shareholders.”