【Friday Beyond Spotlights III】Ronald Lam: Flying to Greater Heights

Hosted by Nick Chan, Episode 9 of Season 3 features Mr. Ronald Lam, CEO of Cathay Group, as he shares insights into the journey of Hong Kong’s iconic home carrier and its role as an international aviation hub. With the Covid cloud dissipating, Ronald and his team are steering Cathay Pacific to new heights.

HK’s role as an aviation hub

Elaborating on the significance of Hong Kong’s pivotal role as an international aviation hub, Ronald stated, “Prior to the pandemic, specifically in 2018 and 2019, Hong Kong International Airport was ranked the third busiest passenger airport worldwide. Furthermore, in terms of cargo operations, we have consistently maintained the top rank as the busiest air cargo hub globally for almost two decades.”

Ronald attributed Hong Kong’s inimitable aviation status to its strategic location. He explained, “Within a five-hour flight from Hong Kong, over half of the world’s population can be reached.” The second reason lies in Hong Kong’s exceptional infrastructure. Ronald emphasized, “We possess one of the world’s finest airports. Additionally, by the end of this year, our three-runway system will commence operations, augmenting our airport’s capacity by an additional 50%.” The third reason he highlighted is Hong Kong’s extensive connectivity across the globe, including the Greater Bay Area and cities within mainland China. Lastly, he underscored the importance of local talent in supporting the aviation industry. “Over the years, we have nurtured our own pool of aviation professionals. People are a critical component and one of the fundamental aspects that propel Hong Kong to be at the forefront of global aviation hubs.”

Continuously growing

Ronald highlighted Cathay’s dedication to growing alongside the Hong Kong government’s efforts to strengthen the city as the aviation center. He pointed out several key missions undertaken by the airline since last year. “Firstly, our priority has been to rebuild after the pandemic. Currently, we are operating at approximately 80% of our pre-pandemic passenger flights and 85% of our cargo capacity. Our objective is to reach 100% capacity for both passenger and cargo flights by the first quarter of next year.” Additionally, Cathay aims to expand its workforce by 20%, which translates to the addition of 5,000 employees this year alone. By year-end, the company’s workforce will approach 30,000 individuals. Another area of focus is Cathay’s substantial investment in the future. Ronald explained, “We have been diligently investing in our fleet and cabin products. There is much to anticipate for our valued customers.”

Cathay hopes to lead the charge in reducing aviation’s impact on climate change for a more sustainable future. Ronald underlined their commitment to being an industry leader in Asia. The company has set a long-term goal of achieving net-zero carbon emissions by 2050. To achieve this, Cathay has established medium-term targets. “The first aspect is improving fleet and operational efficiency, aiming for a 12% reduction in carbon emission intensity by 2030 compared to 2019 levels.” Cathay already excels in this area but continues to invest in new fleets and optimize operations for maximum fuel efficiency. The second aspect is the utilization of sustainable aviation fuel (SAF). Despite SAF’s limited supply and production, Cathay has set an ambitious target of using at least 10% SAF in their fuel burn by 2030. They are actively collaborating with international and Chinese mainland partners to scale up SAF production and meet this goal.

A people-centered approach

When asked about Cathay Pacific’s strength, Ronald replied, “If I had to name one thing, it has to be our people.” Ronald then shared his own philosophy in team building and leadership. “I believe in servant leadership. As a leader, our role is not just to exert control from above, but rather to support our teams.” He believed that it is crucial for a company to respect their people. “In Cathay, we believe happy employees lead to happy customers. So as leaders, we treat our people the way we want them to treat our customers.”

Ronald also shed light on the multinational nature of the Cathay Group, stating, “We have a diverse workforce with employees from Hong Kong, Mainland China, and various international backgrounds.” He viewed this multinational culture as a unique advantage that sets the company apart. Ronald expressed his belief that diversity and inclusion are essential within the Cathay Group, highlighting the existence of working groups dedicated to promoting diversity across different dimensions such as gender, sexual orientation, and cultural background. “We have been doing quite well, as we have received positive feedback from employees worldwide,” he said with a smile.