COULD VIETJET DEAL WITH BOEING FOR A HUNDRED 737 MAX PLANES BE GROUND Shortly after the U.S. Federal Aviation Administration declared Vietnam complied with international aviation standards, allowing Vietnamese carriers to fly to the United States for the first time and code- share with U.S. airlines. Vietnamese carriers VietJet and Bamboo signed deals with Boeing to purchase 110 planes worth more than $15 billion. Many are now questioning the deals as Boeing 737 MAX 8 and 10 planes have been grounded after a Boeing 737 MAX jet in Ethiopia crashed leaving many questioning the safety of the plane, leaving billions of dollars in deals for Boeing now up in the air for the airplane manufacture as the company has a backlog of more than 4,600 orders for the 737 Max. BANKING GIANTS WORRIED THAT BIG TECH ARE GETTING THEIR FANGS INTO THE SECTOR Dave McKay, Royal Bank of Canada’s chief executive recently told investors that he’s increasingly worried about the so-called FANG companies; Facebook Inc., Amazon.com Inc., Netflix Inc. and Google getting into banking. As more and more customers use the internet to research all types of products and services, includ- ing financial services, it goes without saying that FANG companies are already inserting themselves between the bank and its customers. McKay is not alone, as the finance industry has become increasingly concerned that major tech com- panies might try to sideline banks by handling more of their customers’ payments, offering loans or accepting deposit, even if those services open them up to more regulation. McKay said his goal is to build out services that allow Royal Bank to be a bigger part of a customer’s life before they have to make a financial choice which is now being affected more as people increasingly turn to the technology giants when shopping for financial services.
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MARCH 2019 • SPOTLIGHT ON BUSINESS MAGAZINE
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