Cathay Pacific must not let down Hong Kong public

“A stated resolve at the top to take tough decisions in the fourth quarter … is welcome”, you say in your recent editorial, “Cathay Pacific has to reach new heights after Hong Kong government bailout” (June 9). But this was long overdue.

Cathay Pacific was once the pride of Hong Kong. It is saddening to see that our flag carrier has deteriorated to the point where it has to be bailed out with public money. There is no question that Cathay is operating in difficult times and is facing many challenges (both internal and external). But, thus far, the approach taken by Cathay Pacific’s management has been largely one of inaction. No major restructuring plans have been announced and there is no clear strategy for dealing with the multitude of internal issues.

This is not a time for Taoist wu wei (“non-doing”). Patrick Healy, the Cathay chairman, told a press conference on June 9 that, “quite frankly without this plan the alternative would have been a collapse of the company”. This did not instil confidence in his or his management’s ability to lead the airline through the crisis.

The board of Cathay Pacific is accountable to its shareholders. As someone who does not hold any shares in the company, I have only been observing the mismanagement and neglect from a distance, often with utter bewilderment and exasperation.

Now that Cathay Pacific has received public funds, the (mis)management of the flag carrier has become an issue of public concern.

The Hong Kong government is injecting capital into Cathay Pacific without taking a proportionate voting stake, described by a Bloomberg commentator as “the closest thing imaginable to a free lunch”. It is thus unclear how the two government-appointed observers on the board can ensure that public money is being well spent.

Cathay Pacific must repay the goodwill and generosity of the Hong Kong people. It is incumbent on its management to take the right steps to deliver a turnaround in the airline’s fortunes. They owe it to Hong Kong.

Bryan Fok, Central

What does saving Cathay mean for HK’s future?

What can we glean about China’s plans for the future of Hong Kong, following Tuesday’s announcement about the Hong Kong government’s intervention to save Cathay Pacific?

If Hong Kong is to maintain any relevance in the future as a gateway in and out of China and avoid becoming just another Chinese city, then continuing to have its own airline is an important step in achieving that, even if there is oversight from the mainland of how it is run.

Presuming the mainland did sanction or even push for Cathay’s survival, can we surmise they support a special role for Hong Kong in a meaningful way?

Alastair Murray, Sai Kung