SINGAPORE (Reuters) - Hong Kong’s Cathay Pacific Airways (0293.HK) shook up its top ranks further as Chairman John Slosar resigned on Wednesday, less than three weeks after mounting Chinese regulatory scrutiny led to the shock departure of its chief executive.
The airline has become the biggest corporate casualty of anti-government protests after China demanded it suspend staff involved in, or who support, demonstrations that have plunged the former British colony into a political crisis.
Slosar, 63, will be replaced by Patrick Healy, a long-time executive at the airline’s top shareholder and manager Swire Pacific Ltd (0019.HK), Cathay announced.
“I think the timing is definitely very surprising,” BOCOM analyst Luya You said of Slosar’s resignation. “It is a very inconvenient time for Cathay.”
Cathay shares rose 7.2% on Wednesday as media reports that an extradition bill that triggered months of unrest will be withdrawn drove up the market.
Hong Kong leader Carrie Lam later announced the withdrawal of the bill.
In a filing to the stock exchange, Cathay said Slosar, who has been chairman since 2014, “confirmed that his resignation is due to his retirement and that he is not aware of any disagreement with the Board of the Company.”
Slosar’s latest three-year board term had been due to expire in May 2020 unless extended by a shareholder vote, according to regulatory filings, although a spokeswoman said his retirement had been planned “for some time”.
His resignation follows the departure of CEO Rupert Hogg last month. Hogg was replaced by Augustus Tang, who had previously headed Swire’s aircraft maintenance company.
The exit of Slosar, a former Cathay CEO who has spent 39 years with Swire, and the appointment of Healy will take effect after Cathay’s Nov. 6 board
