Hong Kong, China – For numerous years, Hong Kong’s Cathay Pacific Airways (CPA) represented a significant symbol of the city’s global prestige and a prime example of Asian aviation excellence.

In recent times, the premier airline has turned into the government’s favorite target for criticism, confronting harsh scrutiny as it strives to rebound from the effects of the COVID-19 pandemic.

Following the cancellation of more than 700 flights between December and February, Hong Kong Chief Executive John Lee Ka-chiu expressed his deep concern, urging a swift restoration of local aviation capacity.

The criticism from the Transport and Logistics Bureau was echoed in March, culminating in a public examination of Cathay's CEO Ronald Lam Siu-por by the Legislative Council, where the airline faced accusations of "chaotic management."

In April, the pro-Beijing South China Morning Post posed the question: “Can Cathay Pacific get its act together, or is it time for Hong Kong authorities to take a stake in the airline?”

Despite calls for the Hong Kong government to take a stake in Cathay to secure the city’s status as an aviation hub, this has yet to happen. The scenario is nonetheless contemplated under Beijing’s 14th five-year plan, a crucial document in Hong Kong's business community given China's growing influence.

“It's not the government’s plan to become a long-term stakeholder in CPA,” a Transport and Logistics Bureau representative told Al Jazeera.

Many believe that a pilot shortage, highlighted by the Hong Kong Aviation Officers Association (HKAOA), is the main challenge for Cathay. This shortage stems from Hong Kong’s stringent and prolonged travel restrictions during the pandemic.

In January 2020, passenger traffic at Hong Kong International Airport (HKIA) exceeded 5.7 million. By April, this number plummeted to just 31,739, a mere 0.55 percent of the pre-pandemic level.

Even with its significant dependence on international travel and commerce, Hong Kong was one of the last places to lift all COVID-19 restrictions, fully reopening in early 2023.

Cathay downsized its staff by firing 1,000 pilots in 2020 and losing another 1,000 to resignations thereafter, according to the HKAOA. Many departing pilots cited the extreme stress of adhering to Hong Kong’s rigid quarantine policies. These "closed loop" flights required five weeks of hotel isolation followed by two weeks at home.

As of now, Cathay states it employs over 2,900 pilots, including those from its budget carrier, Hong Kong Express, but it requires 3,400 pilots to return to pre-pandemic operation levels. The airline has planned to hire 500 more pilots.

Some argue that the government’s criticism is unjustified, given that its own severe restrictions contributed significantly to Cathay’s challenges.

“Cathay remains one of the top-performing airlines globally with its financial health outperforming the top three Chinese carriers, boasting profits around 10 billion Hong Kong dollars,” noted Zheng Lei, head of the Aviation Department at Swinburne University, to Al Jazeera.

In March, Cathay declared its first annual profit in four years, totaling 9.78 billion Hong Kong dollars ($1.25 billion).

“We reached our end-2023 goal of 70 percent of pre-pandemic passenger flights as planned and will achieve 80 percent within this quarter, aiming for 100 percent by the first quarter of 2025,” a Cathay Pacific spokesperson mentioned.

“Hong Kong has been our home for over 77 years, representing the city on the global stage as its home carrier,” added the spokesperson.

However, despite these promising figures leading CEO Ronald Lam to declare “Cathay is back,” there is little celebration in governmental circles.

“Some government criticism is valid concerning flight cancellations, service disruptions, and managerial issues – all of which need addressing. But Cathay has made significant corrections, including recruiting pilots from China,” Lei commented, indicating that enhancing customer service is much easier than reversing the fortunes of a loss-making airline.

Cathay obtained substantial government financial support during the pandemic, with critics arguing this created a moral obligation for the airline to uphold high standards and retain its workforce.

“The Hong Kong government supported Cathay to preserve the local aviation sector, but it failed,” Paul Weatherilt, chairman of the HKAOA, told Al Jazeera.

Lei added that China's leading airlines fared better in retaining their personnel.

In June 2020, Cathay received a 7.8 billion Hong Kong-dollar ($998 million) bridge loan from the government and sold shares with detachable warrants worth 19.5 billion Hong Kong dollars ($2.49 billion).

In December 2023, Cathay redeemed half of the preference shares held by the government; the loan option was never exercised.

Weatherilt claimed that Cathay used the pandemic as a pretext for imposing permanent layoffs, salary reductions, and worsened working conditions on its staff.

“Other airlines made temporary cuts to retain core skills and assets,” he said. “Cathay has left Hong Kong aviation struggling.”

The government, upon offering financial support, requested Cathay to “consider the potential implications for Hong Kong’s status as an international aviation hub and network.”

Weatherilt believes this government posture leaves Cathay exposed.

“Swire should be concerned because it appears vulnerable – the company managing Hong Kong aviation is ultimately controlled by a firm in London,” he said, referring to John Swire & Sons Limited.

Political and colonial issues linger beneath business activities as China tightens its control over Hong Kong.

Cathay has faced scrutiny from Beijing since the 2019 pro-democracy demonstrations in Hong Kong.

Rupert Hogg and Paul Loo, Cathay's British CEO and chief customer & commercial officer respectively, resigned in August 2019 amid pressures to discipline employees supporting the protests. Concurrently, pilots underwent strict ground checks for any Cathay flight landing in mainland China.

Chongxian Ma, Air China's Communist Party Committee deputy secretary, became a non-executive director at Cathay in June 2021. Two additional Communist Party non-executive directors joined in May 2022 and July 2023.

In May of the previous year, Cathay issued an apology following a social media incident involving flight attendants mocking a non-English-speaking passenger.

Bloomberg's report earlier this year that Beijing-based Air China might increase its 29.99 percent stake in Cathay led some to believe it to be part of China’s strategy to strengthen its control over Hong Kong’s flag carrier.

However, one industry insider suggested that the move was likely driven by financial reasoning, as Air China relies on its Cathay stake to offset losses.

Though some nationalist elements might favor replacing Cathay with a Chinese-owned operator, it is widely agreed that no viable alternatives exist in the immediate term.

“Developing an alternative flag carrier is neither feasible nor advisable,” Lei said.

British-owned Cathay Pacific appears to be an easy target for politicians enhancing their patriotic image, particularly since criticizing the government has become highly risky and potentially unlawful under the National Security Law enacted in 2020.

On Wednesday, Hong Kong lawmaker Jeffrey Lam Kin-fung urged Cathay to start direct flights to the eight small mainland Chinese cities recently designated by Beijing for eased travel restrictions to Hong Kong, fully leveraging Beijing’s goodwill.

Political interference is an escalating worry.

Using Cathay as a public scapegoat could backfire as Hong Kong attempts to re-establish itself as a lively metropolis, financial hub, tourist destination, and business gateway to China.

Unlike Hong Kong’s approach to Cathay, Dubai’s government refrained from criticizing Emirates Airways after many of its passengers were stranded in April due to extreme flooding in the UAE.

“Cathay may not voice its grievances publicly, but has reasons to feel wronged,” an industry insider familiar with Cathay’s management challenges mentioned.

While Singapore has resumed pre-pandemic passenger activity by February this year, Hong Kong remains behind.

March 2024 saw 4.35 million passengers at Hong Kong International Airport, approximately two-thirds of the March 2019 figure.

“The depleted interest in Hong Kong originates partly from the 2019 protests that severely tarnished the SAR’s reputation as an aviation, financial, and tourist destination, along with the stringent measures enforced during COVID,” Shukor Yusof of Endau Analytics mentioned, referencing Hong Kong's Special Administrative Region status.

Negative media coverage, including the high-profile prosecution of former media magnate Jimmy Lai, has further damaged Hong Kong’s reputation.

As both Hong Kong and Cathay work to rebuild, their futures remain closely intertwined.

“To develop Hong Kong as a financial hub and restore its global aviation hub status, Cathay Pacific Airways needs more support and less criticism,” Lei concluded.