United Airlines cancels Boeing 737 MAX flights until January 6

A United Airlines logo is seen behind the ticket counter at Chicago's O'Hare airport. (File/AFP)
Updated 11 October 2019

United Airlines cancels Boeing 737 MAX flights until January 6

  • Among other US airlines that operate the MAX, Southwest Airlines Co. has canceled flights through January 5
  • The fast-selling 737 MAX has been grounded worldwide since mid-March while Boeing Co. updates flight control software

WASHINGTON: United Airlines Holdings Inc. said on Friday it is extending cancelations of Boeing 737 MAX flights until January 6, as regulators continue to extensively review proposed software changes to the grounded plane.
The company said it expects to cancel more than 8,000 flights for October, November, December and the first few days of January and that it will monitor regulatory updates and make adjustments accordingly.
Among other US airlines that operate the MAX, Southwest Airlines Co. has canceled flights through January 5, while American Airlines Group Inc. has extended cancelations of Boeing 737 MAX flights through January 15.
“We have cooperated fully with the FAA’s independent review of the MAX aircraft, and we won’t put our customers and employees on that plane until regulators make their own independent assessment that it is safe to do so,” the company said in a statement.
The fast-selling 737 MAX has been grounded worldwide since mid-March while Boeing Co. updates flight control software at the center of two crashes in Indonesia and Ethiopia that together killed 346 people within a span of five months.
Boeing is planing a revision of the 737 MAX software to take input from both of its angle-of-attack sensors in the anti-stall system linked to the two deadly crashes and has added additional safeguards.
The company is also addressing a flaw discovered in the software architecture of the 737 MAX flight-control system involving using and receiving input from the plane’s two flight control computers rather than one.
Federal Aviation Administration (FAA) Administrator Steve Dickson told Reuters in September that the agency will need about a month following the yet-to-be scheduled certification test flight before the planes could return to service.
Reuters reported this week that the flight is not expected before November 1, as the FAA continues to review software changes, meaning the FAA is unlikely to allow its return until late November or December at the earliest.


UBS fined $51 million by Hong Kong regulator for overcharging clients

Updated 11 November 2019

UBS fined $51 million by Hong Kong regulator for overcharging clients

  • Hong Kong regulator’s investigation exposed ‘serious systemic internal control failures’ at the bank
  • In March, the Securities and Futures Commission banned UBS from leading initial public offerings in Hong Kong for a year

HONG KONG: Swiss bank UBS was fined HK$400 million ($51.09 million) by Hong Kong’s securities regulator for overcharging up to 5,000 clients for nearly a decade, the watchdog said on Monday.
The Hong Kong Securities and Futures Commission (SFC) said in a statement that an investigation found UBS had overcharged clients on ‘post-trade spread increases’ and charges in excess of standard disclosures and rates between 2008 and 2017.
THE SFC said the investigation exposed ‘serious systemic internal control failures’ at the bank. UBS had failed to disclose conflicts of interests and had overcharged some clients in ‘opaque’ trades, it said.
The overcharging affected 5000 Hong Kong managed client accounts in about 28,700 transactions, it said.
UBS has also agreed to repay the clients HK$200 million, the SFC said.
The regulator said the over-charging occurred in the bank’s wealth management division on bond and structured notes transactions.
UBS was found to have increased the spread charged after the execution of a trade without the clients’ knowledge, it said.
In the statement, the SFC said UBS was also found to have falsified some account statements which were issued to financial intermediaries who were authorized to trade for the clients to “conceal the overcharges.”
UBS said the issues were ‘self-reported’ to the SFC and the results found were against the bank’s standard practice.
“The relevant conduct predominantly relates to limit orders of certain debt securities and structured note transactions, which account for a very small percentage of the bank’s order processing system,” the bank said in a statement.
SFC chief executive Ashley Alder said while each “overcharge represented a fraction of each trade” the bank’s “misconduct involved decisions and a pervasive abuse of trust resulting in significant additional revenue for UBS to which it was not entitled.”
In March, the SFC banned UBS from leading initial public offerings in Hong Kong for a year after it found the bank, and some of its rivals, had failed to carry out sufficient due diligence on a number of deals.
UBS was fined HK$375 million while Morgan Stanley was fined HK$224 million, Merrill Lynch HK$128 million and Standard Chartered (StanChart) HK$59.7 million, all for failures when sponsoring, or leading, public market floats.