Key Takeaways
• UBS bans business class for China flights under five hours to unify global travel policies and cut costs.
• The shift follows UBS’s Credit Suisse acquisition, aiming for $13 billion in savings by 2026 after already saving $7.5 billion.
• UBS gained full ownership approval of its Chinese securities unit in March 2025 despite slower dealmaking and trade tensions.
UBS has changed its travel policy for bankers taking short trips to China 🇨🇳, telling them they are no longer allowed to book business class tickets unless the flight is longer than five hours. This new rule is part of a larger effort by UBS to treat all bankers the same, no matter where they work, and to cut costs during a time of slow business in the region.
The new policy removes a special rule that once let China-focused bankers book business class flights within China 🇨🇳, even for short flights like those between Hong Kong and Shanghai. Many bankers often use these routes, and in the past, some business class tickets could cost less than $500 for a one-way trip. Despite the low price, UBS is now asking its staff to only fly business class if the flight lasts longer than five hours. This policy has existed in other areas for years but is now applied consistently across all UBS regions, including what is called Greater China 🇨🇳.
This shift is not just about saving money, though that is a big part of it. Dealmaking in China 🇨🇳 has slowed down, partly because trade tensions with the United States 🇺🇸 have continued to grow. Not long ago, China 🇨🇳 was seen as a place where UBS and other banks could expect strong growth in Asia, but now, the environment is much more difficult. With fewer big deals in the market, banks are making changes to reduce spending wherever they can, especially in costly areas like travel.
Let’s look at how the new policy works and why UBS made this move.
What Changed in the Travel Policy?
Before, bankers who were dedicated to China 🇨🇳 could fly business class for any trip under five hours, even if cheaper economy class tickets were available. UBS found that flights in and out of Hong Kong to nearby cities in mainland China 🇨🇳, such as Shanghai or Shenzhen, were not only short but sometimes cheap, even when booked in business class. The earlier rule let bankers pick business class no matter what the price was, making it a popular option for many employees.
Now, UBS has removed this exception. Employees who travel in China 🇨🇳 on flights shorter than five hours must book a seat in economy class, just like their co-workers in other parts of the world. From now on, only flights longer than five hours—often between countries or from Asia to Europe—allow for business class. This makes UBS’s travel policy simpler, with the same rules for all bankers everywhere. The company hopes this will help keep costs down and end confusion about what tickets are allowed.
Why Did UBS Make This Change?
To understand why UBS made this move, it’s important to look at what has been happening in China 🇨🇳 and in the banking world more widely.
Over recent years, dealmaking (the process of putting together large business deals, including mergers and taking companies public) has slowed down in China 🇨🇳. There are many reasons for this, but one big factor is the ongoing tension between China 🇨🇳 and the United States 🇺🇸. These trade problems have made it harder for banks to find as much business as they used to. China 🇨🇳 was once seen as an area of big opportunity, but the banking environment is much tougher now.
UBS has also been merging with Credit Suisse since 2023. This huge deal brought together two of the biggest banks in Switzerland 🇨🇭 and meant UBS had to look closely at how to save money in every part of its business. Securing $13 billion in cost savings by 2026 is a key goal for the bank. As of February 2025, UBS had already reached $7.5 billion in savings. To get there, the bank has made a lot of changes, including cutting more than 10,000 jobs. Travel expenses, although small compared to other costs, are one more area where UBS hopes to save money now that the bank is larger after the merger.
By removing the special rule for business class flights within China 🇨🇳, UBS treats all its bankers equally and gives a clear message: cost savings are a priority everywhere, not just in the head office or in one region.
How Does This Affect Employees?
For many bankers based in Hong Kong or traveling often within China 🇨🇳 for work, this change means giving up a little bit of comfort. Business class seats offer more space, food, and a quieter environment—things that can make a big difference for busy, tired bankers, especially when traveling often between cities. For a route like Hong Kong to Shanghai, a trip of just under three hours, business class was a popular choice because it sometimes cost less than similar flights of the same length elsewhere.
Now, unless their flight is more than five hours, these bankers will fly in economy class. While this may not seem like a major loss for short flights, it is a big change of routine for some. It also brings all bankers around the world in line, as the five-hour business class rule had already been in place in most other markets for years.
UBS believes this standard policy makes things fair for everyone. As reported by VisaVerge.com, simplicity matters when it comes to company rules. When rules are clear and the same everywhere, it can even help avoid quarrels or complaints among staff.
Cost Cutting After the Credit Suisse Deal
The change in China 🇨🇳 travel rules comes at a time when UBS is making many moves to lower expenses, especially after buying Credit Suisse. Acquiring another big bank means looking at everything—from how much is spent on staff, travel, and offices to how different teams do their work. UBS aims to find $13 billion in savings by 2026 from blending the two banks together. So far, more than $7.5 billion has already been saved, and UBS has let go of over 10,000 workers in the process.
Cutting back on travel costs, even a small amount, helps reach these savings targets. Flights and travel for bankers add up when many people travel often. As economic activity slows in China 🇨🇳, there is even more need to watch all outgoings.
Market Slowdown and the Impact in China
Besides cost-cutting inside the bank, UBS is also reacting to what is happening in the market. China 🇨🇳 and Hong Kong have not seen as much dealmaking lately. This is due to increased trade conflicts with the United States 🇺🇸 and a cautious mood among investors. For years, banks counted on China 🇨🇳 for major growth in Asia, but those days are on pause.
UBS is not alone in acting on these changes. Other international banks based in Hong Kong have also been updating their travel rules. With fewer big deals and harder competition, banks are looking at all ways to stay strong and save money.
Another notable point is leadership. Iqbal Khan, who heads Asian operations from Hong Kong and also shares global wealth management duties, is shaping how the group deals with tough markets. His approach, including steps like tighter travel policies, is meant to build stability during uncertain times.
Growing Presence in China Despite Challenges
Even with the slowdown, UBS continues to grow its business in China 🇨🇳. In March 2025, UBS got important regulatory approval to fully own its Chinese securities unit. This is a big move. Full ownership lets UBS operate more freely and expand in a market known for having limits on foreign ownership in finance. The approval opens chances for the bank to try new business plans in China 🇨🇳, even though market conditions are not as strong as before. For more details on how foreign banks can operate within China 🇨🇳, official information is available on the China Banking and Insurance Regulatory Commission’s page.
This shows that UBS sees long-term promise in the country. While the current market is hard, the bank is putting down deeper roots, knowing things may get better in the future.
What Are the Long-Term Effects?
UBS’s travel policy update is one sign of larger changes happening in global banking. The stricter cost controls are a response to difficult market conditions, but they may also become normal practice. As more banks treat employees equally across countries and regions, fairness becomes a key goal. Simple, clear rules are less open to exceptions and help large companies run smoothly after a big merger.
For workers, the change means less comfort on short trips but likely more jobs and pay protection in the long run if the company becomes stronger. For investors and clients, the policy shift is a signal that UBS is serious about making its business stable—even when profits are under pressure.
Greater China 🇨🇳 is a core area for UBS’s Asia business and is still important for future plans. The bank’s new ownership approval of its Chinese securities unit shows a continued interest in the area’s financial markets, despite today’s challenges.
Stakeholder Reactions and Broader Context
Different groups will feel the effects of this travel policy. Employees who fly often between cities may worry about having to spend more of their workday in crowded, less comfortable airplane seats. Still, the bank’s push for fairness and cost savings is likely needed to help everyone keep their jobs during harder times.
Clients may notice that their relationship managers and bankers are still visiting them in person, just not in business class on every trip. If UBS keeps investing in its teams and services in China 🇨🇳, clients may not see any big change in the level of service.
Investors are likely to view UBS’s actions positively. They want to see signs that the bank is able to respond quickly to changing market conditions and keep its costs under control, which helps protect profits for the future.
Other banks, especially in Hong Kong or mainland China 🇨🇳, may take similar steps if the economic downturn continues. The move by UBS could set off a trend where all large international banks ask their staff to fly in economy on short trips, making old business class perks less common.
Summary and Next Steps
UBS’s ban on business class travel for short trips in China 🇨🇳 is part of a wider push to control costs, make rules fairer for all staff, and adjust to a slower market after the Credit Suisse merger. The bank is trying to balance comfort for employees with the need to save money and meet its long-term goals.
The change shows how international banks are updating their policies to deal with tough times in China 🇨🇳, while still putting down roots in key markets. As companies like UBS seek to grow and get stronger, you may see more rules that make company spending leaner but treat workers more equally across regions.
If you want to follow official news about business operations and rules in China 🇨🇳, you can check the China Banking and Insurance Regulatory Commission’s website. For the latest changes to UBS’s business class policy and insights on how it affects staff and the market, VisaVerge.com continues to provide clear and up-to-date analysis.
Learn Today
Business class → A premium airline travel class offering greater comfort, larger seats, and better services than economy, often at higher cost.
Credit Suisse merger → The process in which UBS acquired Credit Suisse in 2023, creating a single, larger banking entity.
Dealmaking → The process of arranging significant business transactions such as mergers, acquisitions, or investment agreements.
Regulatory approval → Official permission from government or oversight bodies required for major business actions, such as expansions or acquisitions.
Greater China → A term encompassing mainland China, Hong Kong, Macau, and sometimes Taiwan, used to describe regional business operations.
This Article in a Nutshell
UBS has updated its travel policy, banning business class on China flights under five hours. The change, effective globally, aims to cut costs after slower deal activity and the Credit Suisse merger. Employees now have unified rules, and UBS signals continued commitment to efficiency, stability, and fair practices amid a challenging market.
— By VisaVerge.com
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