Deng Jianrong will replace He Gao as CEO, and Lin Shaobo will replace Lu Jiapei as customer and business president; Lin Shaobo will remain as CEO of Hong Kong Express Operations until his successor is announced separately.

Beijing News (Reporter Zhang Zeyan) On August 16, the board of directors of Cathay Pacific issued an announcement announcing personnel changes at the senior management level. Deng Jianrong will replace He Gao as CEO, and Lin Shaobo will replace Lu Jiapei as customer and business president; Lin Shaobo will remain as CEO of Hong Kong Express Operations until his successor is announced separately. He Gao and Lu Jiapei have confirmed that their resignation is to be responsible for the events the company has faced in recent months.

htmlOn August 16, Cathay Pacific rose 2.21% to HK$10.60 per share. Starting from July 17, the share price of Cathay Pacific began to "fall continuously", plummeting 28%, and its market value evaporated by tens of billions of Hong Kong dollars, and it did not rebound until August 14.

htmlOn August 13, Cathay Pacific issued a statement saying that Cathay Pacific is deeply concerned about the recent violence and sabotage activities in Hong Kong. Cathay Pacific firmly supports the unremitting efforts of the Hong Kong SAR government, the Chief Executive and the Hong Kong police in stopping violence and restoring legal order, and condemns all illegal activities and violent acts that challenge the principle of one country, two systems and the authority of the Basic Law. Cathay Pacific stated that it complies with relevant regulations on the Hong Kong Civil Aviation Department and Cathay Pacific flights to and across all countries and regions, and will fully comply with the safety instructions of the Civil Aviation Administration of China.

resigned, two executives said they were responsible for the events the company faced in recent months

announcement showed that Cathay Pacific chairman Shi Leshan said that the recent incident has questioned Cathay Pacific 's commitment to flight safety and security has also put pressure on Cathay Pacific's reputation and brand. Therefore, it is considered that this is the right time to appoint a new management team, rebuild confidence and lead Cathay Pacific to a new peak. Cathay Pacific fully supports Hong Kong in implementing the "one country, two systems" principle granted by the Basic Law, and is full of confidence in Hong Kong's bright future.

company introduced that Deng Jianrong is 60 years old and graduated from Chinese University of Hong Kong . He joined Swire Group in 1982. He has been stationed in the company's offices in Hong Kong, Malaysia and Japan. Deng Jianrong was appointed as the company's corporate development director in January 2005; he served as the company's executive director from January 2007 to October 2008; he served as the director and CEO of Hong Kong Aircraft Engineering Co., Ltd. from October 2008 and November 2008 respectively; he served as the executive director of Swire Co., Ltd. from August 2011 to May 2017, and is also a director of Hong Kong Swire Group Co., Ltd. Deng Jianrong's annual salary and all allowances are HK$6.6544 million.

Lin Shaobo is 46 years old and graduated from the University of Cambridge, England. He has served as CEO of Hong Kong Express Airlines Co., Ltd. since July 2019. Lin Shaobo joined Swire Group in 1996 and has been stationed in the company's offices in Hong Kong, Japan and Sri Lanka. He served as the company's business and freight director from June 2017 to July 2019, and served as the director and general manager of Hong Kong Machinery from July 2013 to May 2017. Lin Shaobo's annual salary and all allowances are HK$3.6116 million.

He Gao and Lu Jiapei have confirmed that they are not aware of any matters regarding their resignation and are required to inform the company's shareholders, and have confirmed that their resignation is responsible for the incidents the company has faced in recent months, and are not aware of any differences of opinion with the board of directors.

continued to make profits in the first half of the year after turning a loss, but cargo revenue fell by 11.4% year-on-year

html On August 9, according to the official website of the Civil Aviation Administration, in response to the safety risks and hidden dangers exposed by Hong Kong Cathay Pacific in recent years, the Civil Aviation Administration issued a major aviation safety risk warning to Hong Kong Cathay Pacific .

Recently, Hong Kong Cathay Pacific incidents of incidents involving pilots involved in violent impacts but not stopped flying activities, as well as malicious disclosure of flight passenger information, posing a serious threat to aviation safety, causing bad social impact, and increasing the imported aviation safety risks from Hong Kong to the Mainland.

Previously, on August 7, Cathay Pacific just released its first half of 2019 financial report. Data shows that Cathay Pacific still maintained profitability in the first half of the year after turning a profit last year.During the reporting period, the company achieved a profit of HK$53.547 billion, an increase of 0.9% compared with the same period last year; profit attributable to shareholders was HK$1.347 billion, a loss of HK$263 million in the same period last year; earnings per share was HK$34.2 and dividends per share were HK$0.18.

It is worth noting that from 2016 to the first half of 2018, Cathay Pacific has been in a loss state. Past financial reports show that during the four-year period from 2014 to 2017, the loss of Cathay Pacific due to fuel hedging contracts reached HK$24.17 billion. In 2018, Cathay Pacific turned losses into profits. In 2018, Cathay Pacific achieved revenue of HK$111.06 billion, a year-on-year increase of 14.2%; net profit of HK$2.345 billion, a year-on-year increase of 286.26%.

And in the first half of 2019, Cathay Pacific maintained a profitable state. Data shows that during the reporting period, the number of available seat kilometers of the company increased by 6.7% year-on-year; the passenger occupancy rate was 84.2%, the same as last year; the passenger yield fell by 0.9%. Cathay Pacific said that the increase in the number of new routes, , launched in 2018 and 2019, and the use of larger aircraft on popular routes, have increased passenger revenue, but the competition among first-class and business cabins and long-haul economic cabins, coupled with exchange rate changes, has led to a decline in passenger yields.

In terms of passenger service revenue, Cathay Pacific achieved revenue of HK$37.449 billion in the first half of the year, a year-on-year increase of 5.6%. The company said this is mainly due to the company's launch of new routes in 2018, the launch of two new routes in 2019, the increase in existing routes and the use of larger aircraft for popular routes.

However, Cathay Pacific disclosed that the company's freight revenue during the reporting period fell by 11.4% year-on-year. The group believes that part of the reason is trade frictions and a worse global trade environment.

fuel is the largest cost for the group. Cathay Pacific said that fuel costs accounted for 28.2% of the total operating costs of Cathay Pacific in the first half of 2019, down 7.7% from the first half of 2018, with an average aircraft fuel price falling 6.5% and an increase in fuel consumption by 2%.

In terms of fleet, Cathay Pacific received 4 Airbus A350-1000 aircraft in the first half of this year. As of June 30, 67 new aircraft have been ordered and will be delivered in succession in the next five years. In addition, all A350 aircraft in the fleet are currently equipped with wireless networks.

's three-year transformation plan is coming to an end, but it was downgraded by securities firms

The reporter noticed that in order to reverse the loss situation, in 2017, Cathay Pacific began to implement a three-year corporate transformation plan. 2018 is a critical year for transformation, and in 2019 the plan is coming to an end.

On July 19, 2019, Cathay Pacific completed the acquisition of 100% equity interest in Hong Kong Express Airlines Co., Ltd. Cathay Pacific said that since the company's business and business models with Hong Kong Express are largely complementary, the transaction is expected to have synergies. The company will continue to operate Hong Kong Express as a low-cost airline business model and serve as an independent airline.

Shileshan said that the group's three-year corporate transformation plan has entered its final year, which aims to make its business more streamlined, flexible and competitive. The plan continues to be implemented, and in 2018, it can be seen that Cathay Pacific is heading in the right direction. However, as geopolitical and trade frictions intensify, the operating environment of the group's airlines has deteriorated.

After the financial report was released, Furui, HSBC , Lyon and others all lowered the target price of Cathay Pacific , but maintained the "buy" rating unchanged.

However, on August 13, ICBC International released a research report on Cathay Pacific , saying that it lowered its rating to "strongly sell" and lowered its target price by 39% to HK$6. The

report pointed out that the recent relevant risk warnings issued by the Civil Aviation Administration of China on Cathay Pacific and the poor management of the company's management will cause irreversible damage to its brand awareness as a high-quality airline. In addition, the company's acquisition of Hong Kong Express and its excessive reliance on its Hong Kong business center also poses a further threat to its profitability in the next few years.

Beijing News reporter Zhang Zeyan Editor Liu Xiaoyang Proofreading

Reporter Email: zhangzeyan@xjbnews.com