If it looks like an apples, and smells like an apple, it is probably an apple.
Just look at the turn of events in a logical sequence:
1. Manager from AHK is approached for over a year to come to HKA.
2. Said manager is recruited, along with 8 or 9 Captains (qualified or not).
3. Upgrade program is not approved by HK CAD, not because there were problems with the program. Simply because, the CEO sent a letter to CAD instructing them to not approve the upgrade program at this time (Fact). Hmmmm, what could possibly be the motivation for that.
4. Current management was not in the loop on the manager being recruited from AHK, or the captains being recruited, or the letter from the CEO.
One can only hypothesize as to the reasons for the above. But......
could it be that the CEO knew that GR was going to be replaced, sooner or later, and the ideal would be to have a shortage of Captains=HKA needs Captains=GR coldn't get the upgrade program approved=so, GR needs to be releaved=now we can bring in DE Captains that will accept lower pay, shut up and do as they're told. Then, the upgrade program can be approved (meaning, "See, it really was GRs problem"), but "Oh, I'm sorry, at the present we would upgrade you, but because we 'had' to hire DE captains from AHK, we now don't need any more captains at this time. So, please hang in there for the next three years. Something is bound to open up. Oops, sorry but, by the way, we've change our upgrade minimums. Perhaps you'll meet them by the time you have finsihed your three year contract. "
I could be wrong in my deduction, but I don't have to eat too many bad apples to know I don't like them.