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登1登2登3代理(www.99cx.vip):New Cathay Pacific CEO inherits long to-do list for carrier’s revival

登1登2登3代理(www.99cx.vip):New Cathay Pacific CEO inherits long to-do list for carrier’s revival

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How quickly Lam can accelerate an increase in flights will shape the airline’s finances and levels of profit. One of the major challenges to that is staffing. – Bloomberg

THE new chief executive of Cathay Pacific Airways Ltd faces many challenges when he starts on Jan 1, from reviving the carrier’s international network after the Covid crisis to appeasing unhappy pilots.

Cathay said that Ronald Lam, 50, will replace Augustus Tang as CEO, confirming an earlier Bloomberg News report.

The Cambridge University graduate takes over with Hong Kong’s main airline still in a tight spot after Covid travel restrictions left it operating at bare-bones capacity for much of the pandemic.

While Hong Kong has opened its borders to quarantine-free travel again, rules like mandatory mask-wearing still linger, and Cathay has said it would take at least two more years to fully recover. Other airlines are bouncing back faster.

Like his predecessor, Lam grew up in Hong Kong and spent most of his career at Cathay, having joined as a management trainee in 1996.

He is currently chief customer and commercial officer, as well as chairman of low-cost unit HK Express, which he helped integrate after its 2019 acquisition.

He also spearheaded a new eCommerce strategy to expand non-flying revenue during Covid.

Lam is only Cathay’s fourth ethnically Chinese CEO, and this is the first time the company has appointed consecutive leaders from Hong Kong.

“I have been impressed by his long-term vision for the company, his intellect, and his determination to see the group succeed,” Cathay chairman Patrick Healy said in a statement on Lam’s appointment.

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“He is without doubt ready to lead our organisation.”

Lam certainly has his work cut out. Here’s a look at an initial to-do list for the new CEO.

Covid rebuild

Hong Kong’s belated withdrawal of Covid travel curbs suggests the worst of the crisis is over for Cathay, but it is far behind carriers in other markets.

The airline flew just 16% of pre-pandemic passenger capacity in September, while Singapore Airlines Ltd was back to about 73% of 2019 levels, similar to other major global operators like British Airways and Deutsche Lufthansa AG.

Cathay is also more hamstrung by its exposure to the enormous Chinese market, which is still largely off limits to travel. By origin of sale, revenue generated from mainland China and Hong Kong accounted for over half of total sales in 2019.

The airline is now flying to 51 destinations, only half the number it served before Covid, but at least better than the lows of carrying only a few hundred passengers a day on little more than a handful of routes.

Daily passenger traffic used to be about 100,000. In September, the average was 8,870.

Staffing

How quickly Lam can accelerate an increase in flights will shape the airline’s finances and levels of profit. One of the major challenges to that is staffing.

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