Cathay’s outgoing boss can flash half-decent card

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 CE can flash a half-decent report card. Tang’s over three-year tenure has been filled with turbulence. He navigated the Air China- and Swire Pacific-backed company through backlash from Beijing after employees took part in the 2019 Hong Kong protests. Then the Covid-19 pandemic crippled air travel. The $6b airline has seen a modest rebound of travellers since Hong Kong dropped hotel quarantine requirements. Still, passenger flight capacity is at 16% of pre-pandemic levels. Cathay has survived thanks to aggressive cost-cutting and a $5b 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 $11b 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. <br/>