Cathay Pacific to Replace Chief Executive as Losses Mount -
By NEIL GOUGHAPRIL 12, 2017
Battered by financial losses and rising competition from low-cost airlines, Cathay Pacific, one of Asia’s
biggest full-service carriers, said on Wednesday that it would replace its chief executive officer.
Cathay, the Hong Kong-based carrier controlled by the Swire conglomerate, said in a stock exchange filing
that Ivan Chu, a three-decade veteran of Swire, would step aside as chief executive but would retain a seat on the board.
“The key challenges faced by Cathay Pacific are stiff competition from well-funded, state-owned Chinese carriers, as well as Hong Kong Airlines
and HK Express, which have aggressive fleet-expansion plans in the next two years,” said Corrine Png, the founder of Crucial Perspective, an Asian aviation industry consultant.
While the state-backed carrier Air China is Cathay’s second-biggest shareholder, after Swire,
other airlines from mainland China are signing agreements with foreign carriers.
