Cathay Pacific’s CEO Rupert Hogg quits amid Hong Kong protests
Taking full responsibility of mishandling the situation as the leader of the company, Rupert Hogg has stepped down, making way for a new leader, who might be able to restore trust and confidence of the community and China’s aviation regulator.
Cathay Pacific Airways Ltd., is one of the companies worst affected by the pro-democracy demonstrations currently sweeping Hong Kong. The airline faced pressure online after China's state-run press fuelled a #BoycottCathayPacific hashtag, which trended on Chinese social media.
Beijing's aviation regulator, the Civil Aviation Administration of China (CAAC), required Cathay to submit lists of staff working on flights going to the mainland or through its airspace.
To control the situation and gain back trust, the company has decided to change the leadership.
John Slosar, Chairman, Cathay Pacific Airways Ltd. said, “Recent events put our reputation and brand under pressure and the new leadership could reset confidence."
Cathay Pacific has hence appointed Augustus Tang, 60, as the new CEO.
Hogg had joined Cathay as CEO in 2017 after the airline reported its first loss in eight years. Through cost reductions, including hundreds of job cuts, he had managed to revive the airline’s earnings potential. This year, he led the takeover of Hong Kong’s only budget airline to enter the no-frills market, after more than a decade resisting such a move to focus on premium services. He also had a long association with the Swire Group since 1986. He steadily rose through the ranks with overseas stints in Southeast Asia and Britain, before being tagged as Cathay’s COO in 2014.
After serving the company for so long, it is now time for Hogg to move on and make way for someone new, who can lead the airline out of the new challenges. Tang, who replaces Hogg has also been a veteran with Swire Group. Given the scale of unrest and chaos, currently present in Hong Kong, how Cathay Pacific emerges out of the situation would be to look forward to. The task at Tang’s hand is not easy. However, he shall also have the support of newly appointed Chief Customer and Commercial Officer. As Paul Loo also resigns and Ronald Lam, currently Head of the Hong Kong Express budget business, replaces him.
Together, Tang and Lam would have to work on a strategy that helps Cathay Pacific gain back the trust and confidence of their customers. Taking full responsibility can be seen as a good start, as in the past for other brands like Uber, Starbucks and Airtel, the same approach has been proved beneficial, when it comes to handling difficult situation on social media. From here, how Tang and Lam bring back things to work in Cathay Pacific’s stride again will be to watch out for.
Image Credits: FlightGlobal