Cathay Pacific’s new boss has reason for optimism. Hong Kong’s embattled flag carrier on Wednesday announced Ronald Lam, its chief customer and commercial officer, will take over from Augustus Tang. The outgoing chief executive can flash a half-decent report card.
company through backlash from Beijing after employees took part in the 2019 Hong Kong protests. Then the Covid-19 pandemic crippled air travel.
The $6 billion airline has seen a modest rebound of travellers since Hong Kong dropped hotel quarantine requirements. Still, passenger flight capacity is atof pre-pandemic levels. Cathay has survived thanks to aggressive cost-cutting and a $5 billion bailout. On some measures, it has outperformed. Since Tang’s appointment in August 2019, Cathay has logged a negative total return of 16%. That’s in line with $11 billion Singapore Airlines
, and significantly better than the 30% negative return of the local Hang Seng Index . Lam’s success will hinge on Hong Kong’s Covid policies and whether he can hire enough staff. He might do well, even if times are tough. Capital Calls - More concise insights on global finance:
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