This article is more than 1 year old

This article is more than 1 year old

The head of Cathay Pacific has quit after protests in Hong Kong led to a plunge in the airline’s share price and it came under pressure from Chinese authorities to rein in employees who were supporting the pro-democracy demonstrators.

Rupert Hogg, the company’s British chief executive, and Paul Loo, the chief customer and commercial officer, tendered their resignations to the board on Friday.

The news of their departures broke on Chinese state media rather than on Hong Kong business channels, fuelling suspicions that the move was dictated by anger in Beijing.

The airline’s chairman and former chief executive, John Slosar, said: “Recent events have called into question Cathay Pacific’s commitment to flight safety and security and put our reputation and brand under pressure. This is regrettable as we have always made safety and security our highest priority.

“We therefore think it is time to put a new management team in place who can reset confidence and lead the airline to new heights.”

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Hogg has become the most high profile corporate casualty of the standoff between Hong Kong’s government and its increasingly impassioned residents, after the airline was drawn into the dispute when a pilot was arrested in July.

As China increased the pressure, banks downgraded Cathay’s rating for investors, and the aviation regulator told the airline it would have to submit the names of its crews for checks before flying over the mainland, and remove any staff who had been involved in protests.

A number of Chinese firms effectively boycotted the airline, telling staff not to fly with Cathay for safety reasons. Although Cathay is a major international carrier, more than a fifth of its flights go to the Chinese mainland.

The airline, a long-term partner of British Airways and others in the One World alliance, initially refused to censure any of its 27,000 employees for taking part in the pro-democracy protests. Slosar said he “certainly wouldn’t dream of telling staff what to think”.

But on Monday Hogg emailed staff to say the airline had “a zero-tolerance approach to illegal activities” and that they could be fired if they supported or participated in the protests.

Cathay has dismissed a number of its employees and acceded to the Chinese regulator’s request, saying “overly radical” staff would be suspended from mainland duties.

Pressure on the airline escalated dramatically this week after protests by thousands of people in the main terminal of Cathay’s home hub, Hong Kong international airport, halted all passenger travel, eventually forcing the airline to cancel more than 200 flights.

On Tuesday, Cathay said it was “deeply concerned by the ongoing violence and disruption impacting Hong Kong”. It added: “We resolutely support the Hong Kong SAR government, the chief executive and the police in their efforts to restore law and order … We must act now to stop the violence and preserve the stability, peace and prosperity of Hong Kong.”

Announcing Hogg’s departure on Friday, Slosar said: “Cathay Pacific is fully committed to Hong Kong under the principle of one country, two systems, as enshrined in the basic law.”

Play Video 1:56 Hong Kong: airport protests descend into violence – video report

Shares in the carrier fell on Tuesday to their lowest point in a decade, before recovering slightly by the end of the week. Before being caught up in Hong Kong’s political clashes, Cathay’s stock had already suffered from the effects of the Chinese economic slowdown, exacerbated by the US-China trade skirmishes, with its cargo business taking a hit as exports slowed.

After three years at the helm, Hogg will be replaced by Augustus Tang, the chief executive of Hong Kong Aircraft Engineering, Cathay’s sister company within the Swire Pacific group. Hogg said: “These have been challenging weeks for the airline and it is right that Paul [Loo] and I take responsibility as leaders of the company.”

Protesters are preparing for another weekend of pro-democracy protests in Hong Kong. China has massed armoured personnel carriers on the border, raising fears that it may intervene with military force.