Cathay Pacific Stock Slumps as Chairman Slosar Bails Out
Chen Shanshan
/SOURCE : yicai
Cathay Pacific Stock Slumps as Chairman Slosar Bails Out

(Yicai Global) Sept. 5 -- Shares of Cathay Pacific Airlines slipped after the chairman of Hong Kong's flagship carrier resigned today, just three weeks after its chief executive departed.

Cathay Pacific [HKG:0293] fell 3.6 percent to close at HKD10.32 (USD1.32). The benchmark Hang Seng Index was little changed.

John Robert Slosar has resigned as board chairman effective Nov. 6 and Patrick Healy will succeed him, Cathay Pacific said in a statement yesterday, marking yet another change at the most senior reaches of the company. Rupert Hogg stepped down as chief executive one Aug. 16. Paul Loo quit as executive director and chief customer and commercial officer on the same day a Hogg.

The airline has lost about a quarter of its value since Hogg and Loo's departures were announced.

Slosar joined Hong Kong-based Swire Group in 1980 and served as chairman of Swire Pacific, Swire Properties and Cathay Pacific since March 2014. Healy is a director at the airline's main shareholder Swire Pacific and managing director of Swire Coca-Cola. 

Cathay Pacific returned to profit in the first half, reporting net income of HKD1.35 billion (USD172.2 million). But it forecast a revenue squeeze starting last month as inbound travel to Hong Kong dips because of anti-government street protests that started in early July. Hong Kong International Airport, one of the world's busiest, was even forced to suspend flights mid-August when demonstrators brought chaos to the hub and clashed with police.

Passenger revenue came under great pressure in August and this is set to continue, said new CEO Augustus Tang.

Swire Pacific is the airline's largest shareholder with a 45 percent stake, followed by Air China, which owns 29.99 percent. Qatar Airways owns 9.9 percent.

Editors: Zhang Yushuo, Ben Armour

Follow Yicai Global on
Keywords: Cathay Pacific Airways