04/03/2026

BIZ & FINANCE WEDNESDAY | MAR 4, 2026

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Asia-Europe airfares soar after closure of Gulf hubs

US Treasury says stopping use of Anthropic’s tech WASHINGTON: The US Treasury Department said on Monday it is ending use of all Anthropic products, following President Donald Trump’s government-wide ban on the AI start-up after it rejected the Pentagon’s demands. The US Treasury “is terminating all use of Anthropic products, including the use of its Claude platform, within our department”, said Secretary Scott Bessent in a social media statement. The decision comes at the direction of Trump, he added. “Under President Trump no private company will ever dictate the terms of our national security,” Bessent said on X. Anthropic had previously turned down the Pentagon’s demand that it agree to unconditional military use of its Claude models. It has since vowed to sue over “intimidation” and insists that its technology should not be used for the mass surveillance of US citizens or deployed in fully autonomous weapons systems. The situation has become a rare public dispute between a major tech firm and the US government. But the Pentagon argues that it operates within the law, adding that contracted suppliers cannot set the terms on how their products are employed. On Friday, Trump wrote on his Truth Social platform that he was “directing every federal agency” in the US government to “immediately cease” all use of Anthropic’s tech. “Anthropic better get their act together, and be helpful during this phase out period, or I will use the Full Power of the Presidency to make them comply, with major civil and criminal consequences to follow.” – AFP BlackRock-backed group seeks to close CK Hutchison ports deal without Panama assets: FT LONDON: A BlackRock-backed consortium is pushing to complete its acquisition of CK Hutchison’s global ports business without two terminals in Panama, after authorities seized the assets, Financial Times reported yesterday. Swiss-Italian shipping firm Mediterranean Shipping Company (MSC) and the US-listed asset manager are said to be in talks with CK Hutchison to buy about 41 ports across Europe, Southeast Asia and the Middle East, the report added, citing people familiar with the negotiations. In January, Panama’s top court ruled the concession for Hutchison’s Panama Canal terminals as unconstitutional, prompting authorities to take control of the assets last month. Hutchison’s Panama Ports Company unit has since launched an international arbitration proceeding against the Central American country. The Hong Kong-listed conglomerate has been seeking to sell its non-Chinese ports business, which spans 43 terminals in 23 countries. – Reuters

But it may add to flight times and fuel usage, driving up costs at a time when oil prices have spiked, in a move that could lead to higher fares over the longer term. “Right now the whole of the Middle East is out of bounds, which is a high price for some airlines,” said Subhas Menon, head of the Association of Asia Pacific Airlines. “If then Europe can only be served at a high cost, airline profitability will be undermined. At the end of the day, the price to pay is connectivity.” Alton Aviation Consultancy said airlines operating non-stop services or through alternate hubs outside the affected region – including Hong Kong’s Cathay Pacific Airways, Singapore Airlines and Turkish Airlines – may see short-term gains as passengers shift away from Gulf

Emirates and Qatar Airways normally have a high market share. Australia’s Flight Centre Travel Group has experienced a 75% increase in calls to its stores and emergency assistance lines since the crisis began and has teams working around the clock to help disrupted customers, its Global managing director Andrew Stark said. “Australians are very resilient and are already rebooking flights to the UK/Europe via alternative routes via China, Singapore, and other Asian hubs, as well as North America via hubs such as Houston,” he said. Carriers that offer non-stop Asia-Europe flights are able to bypass the closed Middle Eastern airspace by flying north via the Caucasus then Afghanistan or south via Egypt then Saudi then Oman.

“For months, the government insisted there was no irreparable harm because businesses could always be made whole through refunds,” the Liberty Justice Center said in a statement last week. “The government cannot have it both ways. It cannot argue there is no harm because refunds are available – and then delay when the time comes to return the money,” it added. After the high court struck down his country-specific tariffs, Trump tapped a different law to impose a new 10% duty on imports. He has threatened to hike the level to 15%. On Friday, Trump again slammed the ruling on social media: “Is a Rehearing or Readjudication of this case possible???” – AFP based carriers. Reuters’ checks of several airlines’ websites yesterday showed few near-term bookings available and high prices on offer for flights from Asia to London. Cathay Pacific’s website showed no available economy-class seats on the Hong Kong-London route until March 11, with a one-way ticket on that day costing at least HK$21,158 (RM10,675), falling to a more normal HK$5,054 later in the month. For flights from Sydney to London, Qantas Airways is not offering any economy-class tickets on flights via its normal Perth and Singapore routings until March 17, when one is available for A$3,129 (RM8,760) one-way. For earlier dates, it has pricey options with non-traditional stopovers such as Los Angeles and Johannesburg. Thai Airways is experiencing fully booked Europe-bound flights as European tourists opt for direct routes rather than transiting through the Middle East, according to Thailand’s Transport Minister Phiphat Ratchakitprakarn. A search of the Thai Airways site for travel from Bangkok to London showed tickets were sold out until late next week, and then fares were high. An economy-class ticket for a one-way flight was available for 71,190 baht (RM8,937) on March 15, with prices dropping to 27,045 baht by March 18. Taiwan’s EVA Airways said bookings for its Europe-bound flights had surged as Asian and European passengers seek alternative routing options. Mainland Chinese airlines’ websites showed fares on China-UK routes have also surged far above normal levels, with economy-class seats largely unavailable on near-term departures. A return economy-class ticket from Beijing to London typically costs under 10,000 yuan (RM5,732), but Air China’s only option for today is business class, with a one-way ticket priced at 50,490 yuan. – Reuters

HONG KONG: The price of flights between Asia and Europe has soared after the closure of key Middle Eastern hubs due to the US-Israel war against Iran, with airline websites showing tickets on many popular routes booked out for days. Major Gulf hubs, including the world’s busiest international airport Dubai – which normally handles over 1,000 flights a day – remained closed for a fourth day yesterday, slashing capacity on popular routes like Australia to Europe, where o Shutdown of key airports slashes flight capacity

Travellers check on a departure board displaying cancelled flights to Middle East at Heathrow Airport Terminal 4, in Greater London. – REUTERSPIC

Court denies Trump bid to delay tariff refund lawsuits WASHINGTON: A US federal appeals court on Monday rejected President Donald Trump’s push to delay legal proceedings linked to tariff refunds, allowing the battle to proceed in a lower court. Monday in an order by the US Court of Appeals for the Federal Circuit. seeking refunds have been filed in federal court. the Supreme Court – though on Monday lifted the halt.

These include claims by major firms like delivery and freight giant FedEx, which filed a suit last month, and warehouse retailer Costco, whose challenge came before the Supreme Court’s ruling. Others that have filed cases recently include appliances maker Dyson and cosmetics giant L’Oreal. Some analysts estimate that over 1,000 corporate entities are already involved in the fight for repayments. The US Court of Appeals for the Federal Circuit ruled in August last year that many of Trump’s tariffs were illegal but would return the question of refunds to the Court of International Trade. It held off on returning the case to the lower court as Trump appealed to

A group of small businesses whose case is before the court said in an earlier filing on Monday that the Trump administration’s call for a months-long delay was “plainly unreasonable.” “This Court should not accept the government’s invitation to grant forms of relief the Supreme Court obviously found inappropriate,” they argued. The Supreme Court decision does not impact Trump’s sector-specific duties. Trump’s global tariffs have triggered a barrage of legal pushback. The Liberty Justice Center, a group representing some of the small businesses challenging the tariffs, estimates that more than 900 claims

The Supreme Court last month delivered a stinging rebuke of Trump’s signature economic policy by striking down his global tariffs – opening the door to a complicated legal fight as companies sue for their money back. The tariffs ruled illegal had generated over US$130 billion for the US government as of late-2025. The Trump administration argued on Friday for a delay of up to four months before litigation on refunds is brought up again at the US Court of International Trade. But the demand was denied on