Cathay picks new CE to halt nosedive

Cathay Pacific Airways has named Rupert Hogg as its CE, replacing Ivan Chu, as Asia’s biggest international airline struggles to revive earnings after reporting its first annual loss in eight years.

Hogg, 55, chief operating officer since March 2014 and a 30-year veteran at parent Swire Group, would take over on May 1, Cathay said on Wednesday. Chu will become chairman of John Swire & Sons (China).

The change at the top, which usually occurs every three years, comes amid Cathay’s biggest business revamp in two decades to help reverse the deterioration in performance.

The premium carrier has been under pressure from lowcost rivals in the region and Chinese airlines, which offer direct routes even as demand for business travel dips.

While giving sketchy details of its review in January, Cathay said changes “will start at the top” and it would eliminate some positions as part of the reorganisation, with key moves taking effect by mid-2017.

The airline said in March it aimed to cut employee costs by 30% at its head office in Hong Kong.

Chu was appointed CEO on March 14 2014, taking over from John Slosar, now chairman of Swire Group.

“Cathay’s deterioration in performance means Rupert will spend his CEO tenure addressing the tyranny of urgency,” said Will Horton, a Hong Kong-based analyst at Capa Centre for Aviation. Chu “should have been replaced earlier but the next generation of leaders were still honing their skills”.

Cathay’s share price has dropped about 30% since Chu became CEO.

The carrier reported a net loss in March of HK$575m ($74m) for 2016.