Cathay Pacific (CPCAY) CEO Rupert Hogg and another senior executive were confirmed to have resigned on Friday following accusations they didn't do enough to stop workers from participating in political demonstrations that have gripped the city-state over the past 10 weeks -- including a massive protest that shuttered Hong Kong's airport last weekend.
Hogg, 57, as well as Chief Commercial Officer Paul Loo, resigned to "take responsibility" as leaders of the company "in view of recent events," Cathay Pacific said in a statement. "The Board of Directors believes that it is the right time for new leadership to take Cathay Pacific forward," the airline said.
The company has been caught in a political firestorm because of the city-state's ongoing pro-democracy demonstrations that have been taking place throughout the summer, which have affected operations. The airline warned earlier this week that it could fire employees who participate in illegal protests.
Operations in Hong Kong International Airport including check-in services have resumed normal. Please check your flight status at https://t.co/mkS9F2LDcW before proceeding to the airport. Once again, thank you for your understanding.— Cathay Pacific (@cathaypacific) August 13, 2019
Augustus Tang Kin-wing, 60, the CEO of maintenance and engineering company Haeco, has been appointed as the new leader of the airline. Haeco is wholly owned by Cathay Pacific's parent company, Swire Pacific.
Newly appointed HK Express CEO Ronald Lam Siu-por was made the new chief customer and commercial officer. Cathay Pacific said it will find a new CEO.
The resignations were revealed in a stock exchange filing. Cathay Pacific's American depositary receipts were down 1.5% at $6.58 in early New York trading on Friday.