SILKRAILS.com (GCTL8.com – FocusAsia Media Ltd)
HONG KONG, Apr 13 (FAM) – News of Cathay Pacific Airways’ management reshuffle – involving chief executive Ivan Chu Kwok-leung being replaced by chief operating officer Rupert Hogg – boosted the company’s shares on Thursday.
Shares jumped as much as 3.5 per cent from Wednesday’s close, at one stage hitting HK$11.30 during Thursday morning, SCMP reports.
But what problems face Hogg? Bosses made a bad bet on fuel prices. They were caught out by the collapse in those prices, because fuel contracts had tied the airline to higher prices for up to four years.