HONG KONG: Cathay Pacific Airways chief executive Ivan Chu Kwok-Leung will be replaced by the airline’s chief operating officer Rupert Hogg on May 1 , Hong Kong’s flagship carrier has announced.
Hogg will assume the role as CEO at a time the airline is undergoing a major shake-up of its business.
Chu, from Hong Kong, was previously COO and had worked with the group in Hong Kong, on the mainland, Taiwan, Thailand and Australia.
Chu, 55, an industry veteran who rose through the ranks at the airline, has been CEO since March 2014. Chu will remain in Swire Group, which owns Cathay Pacific, and will move to the company’s mainland China business to become chairman of John Swire & Sons (China).
Cathay, which last year reported a loss of HK$575mil (RM327.6mil), has been struggling as a premium airline in the face of stiff competition from new entrants, including budget carriers and Middle East competitors.
Under Chu’s tenture as leader, the airline’s share price has fallen 28%, an indication of the tough business environment the company is operating in. He has also overseen a major expansion of the company’s portfolio of destinations and an overhaul of the company’s fleet of aircraft.
Hogg, 55, another Cathay veteran, became chief operating officer in March 2014, with a wealth of experience with Swire Group since joining in 1986. Hogg has also been responsible for the airline’s cargo and sales and marketing divisions.
Under Hogg, a number of directors will be promoted or leave their roles. The post of chief operating officer will also be abolished.
Paul Loo, currently director of corporate development and IT, will become chief customer and commercial officer.
Martin Murray, the airline’s finance director since 2011 and has overseen some of the large fuel hedging losses, will stay in his current post as the re-titled chief financial officer.
Minutes ahead of the town hall meeting, hundreds of staffers at the airline’s headquarters Cathay City on Lantau, could be seen packing themselves into the auditorium.
Swire Pacific chairman John Slosar paid tribute to Chu’s leadership.
“Ivan played a key role in the airline’s management during some very good times and, more recently, some difficult and challenging times. In response, he led the team in devising the three-year transformation strategy which will provide the platform for Cathay’s medium term recovery and continued development.”
Slosar said he was optimistic that the changes would build on the foundations laid by the current management and that the latest moves would take the airline to “new heights”.
He also welcomed the appointment of the new chief executive.
“Rupert brings an impressive level of aviation and business experience to the job,” he said. “He has played a major role as chief operating officer over the last three years and brings commercial focus and a spirit of innovation to our efforts to overcome the well-documented structural challenges facing the airline. He is the right man to lead our team.”
Tony Tyler, a former Cathay Pacific CEO and former director general of the International Air Transport Association, said: “Rupert Hogg will be an excellent chief executive of Cathay Pacific. He’s experienced in the airline business as well as other industries, and is a smart and energetic guy who will lead the airline well. I certainly wish him every success in overcoming the many challenges ahead.”
Geoffrey Cheng, head of transportation and industrial research at Bank of Communications International Holdings (BOCOM), said: “Hopefully the cost saving initiatives will allow them to get through the stormy weather.
“[Rupert Hogg] has been in the COO job for the past few years, so he will know the airline’s operations well. He’s hands on, and understands the current challenges.”
Will Horton, an analyst from CAPA Centre for Aviation, said: “Rupert is the charismatic type of leader Cathay hasn’t had since Tony Tyler but desperately needs in order to win back staff engagement.
“Ivan’s tenure is unmemorable and Cathay lost considerable strategic and financial ground. There were not leadership achievements that would see him elevated to Cathay chairman,” he said. - SCMP
Limited time offer:
Just RM5 per month.
