SINGAPORE (REUTERS) - Hong Kong’s Cathay Pacific Airways said on Wednesday (Sept 4) its Chairman John Slosar has resigned, less than three weeks after mounting Chinese regulatory scrutiny led to the shock departure of its chief executive.
The airline has become the biggest corporate casualty of anti-government protests after China demanded it suspend staff involved in, or who support, demonstrations that have plunged the former British colony into a political crisis.
Slosar, 63, will be replaced by Patrick Healy, a long-time executive at the airline’s top shareholder Swire Pacific.
“I think the timing is definitely very surprising,” BOCOM analyst Luya You said of Slosar’s resignation. “It is a very inconvenient time for Cathay.”
Cathay shares rose 7.2 per cent on Wednesday as media reports that an extradition Bill that triggered three months of unrest will be withdrawn drove up the market. Hong Kong leader Carrie Lam later announced the withdrawal of the Bill.
In a filing to the stock exchange, Cathay said Slosar “confirmed that his resignation is due to his retirement and that he is not aware of any disagreement with the Board of the Company”.
Slosar’s latest three-year board term had been due to expire in May 2020 unless extended by a shareholder vote, according to regulatory filings, although a spokesman said his retirement had been planned “for some time”.
Slosar's resignation follows the departure of chief executive Rupert Hogg last month.
Hogg was replaced by Augustus Tang, who had previously headed Swire’s aircraft maintenance company.
The exit of Slosar, a former Cathay CEO, and the appointment of Healy will take effect after Cathay’s Nov 6 board meeting.
Cathay said last month forward bookings had declined sharply as a result of the unrest. Pilots and cabin crew at the airline have described a “white terror” of political denunciations, sackings and phone searches by Chinese aviation officials.
In a memo to staff after his resignation and which was seen by Reuters, Slosar said recent weeks had brought some of the most “extraordinary and challenging times we have ever experienced”.
He said that for an airline, however, volatility is normal and Cathay had emerged stronger in the past when it faced challenging times.
Healy, 53, said in a statement that he was confident in the future of Hong Kong despite the current challenges.
“Cathay Pacific will remain fully committed to this great city as Asia’s key aviation hub,” he added.