Cathay Pacific Shares Slide After Beijing's Move

Shares in Hong Kong's flagship carrier Cathay Pacific plunged more than 4 percent on Monday, after Beijing banned airline staff supporting Hong Kong protesters from flights going through the mainland.

This comes as an article in state-controlled Global Times gave the airline a pat on the back, saying it was taking steps in the right direction by initiating actions against employees who were linked to the ongoing anti-extradition bill protests here.

Cathay shares lost 4.37 percent to HK$9.85 by the break in Hong Kong, with the carrier's parent company Swire Pacific plunging 5.26 percent to HK$77.50.

This comes after Beijing's aviation regulator on Friday ordered Cathay to submit a list of the identities of staff working on flights to the mainland or passing through its airspace. It warned any staff members involved in "illegal protests" would be banned from such flights.

Cathay's CEO Rupert Hogg said in a message to staff on Saturday that the airline was obliged to comply with the new rules set out by the Civil Aviation Administration of China (CAAC).

The article in the mainland newspaper Global Times, meanwhile, praised Cathay for what it descried as taking a step in the right direction by sacking two employees and suspending the duties of a pilot accused of rioting.

However, it said the airliner's "sincerity" still needs to undergo the test of time. In a commentary, the paper said some Cathay staff had demonstrated "radical" political inclination and openly challenged Hong Kong's laws.

It said their behaviour had undermined flight safety and service quality, and Cathay flights shouldn't be allowed to fly to the mainland or over its airspace if its is unable to ensure safety.

A separate commentary on the People's Daily, meanwhile, continued to voice support for the Hong Kong police. It said radical protesters had upped their violence against officers by hurling petrol bombs, and there's a need for the police to do everything they can to restore law and order in the SAR.