Update | Dragonair CEO Algernon Yau goes on indefinite leave

Cathay Pacific Airways said on Thursday that Algernon Yau, chief executive of subsidiary Dragonair, will “take leave for personal reasons” from July 11, and Cathay’s director of corporate affairs James Tong will become acting chief executive of Dragonair.

The announcement comes after Cathay in January launched a rebranding of Dragonair as Cathay Dragon, which will put an end to the more than three-decade-old brand.

Yau was appointed chief executive of Dragonair in July 2014. Tong had held that position before becoming director of corporate affairs in August 2014. While management rotations are common at Cathay, it is unusual for one to return to a previously held position.

Carolyn Leung, manager of corporate communication at Cathay, declined to elaborate on the reason for Yau’s sudden leave. “We cannot divulge further as this is his personal matter,” she said.

It is widely believed that Yau is taking leave in order to prepare for the Legislative Council election in September, in which he is running for the seat in the transport functional constituency.

Leung said Yau would take leave from Dragonair’s top post until “he is available to resume his service” but he would remain functional as Cathay’s board director. “We respect his decision to take leave of absence,” she said.