People Express People Express, founded in April 1981, grew rapidly on the basis of low fares and no-frills service. It soon became a leading airline and __1__ changed the industry as firms constantly engaged in price wars to lure passengers. Then, People Express’ bubble __2__ because it overexpanded, consumer complaints mounted and other airlines matched its fares on popular routes. In 1986, People Express __3__ hundreds of millions of dollars and was forced to sell out to Texas Air, the owner of Continental and Eastern Airlines.
/ s1 R( K, M. [/ F$ B9 O: y8 Q In early 1987, Texas Air __4__ People Express into its Continental division and industry observers believed __5__ the costly fare wars would be ended. They could not have been more wrong. To stimulate business for its __6__ continental Airlines, Texas Air instituted a new low fare category __7__ MaxSaver. The fare offered prices that were up to 40 per cent lower than "supersaver" rates offered __8__ all airlines. For example, the round-trip MaxSaver fare from New York to Houston was $70. The MaxSaver fares were immediately matched by all major airlines, __9__ feared losing business.
9 b& ]9 S: q6 u6 l4 G& D While MaxSaver rates were low, they also had restrictions. Tickets could not be __10__ or flight times modified after purchase. Passengers would have to stay over either a Saturday or Sunday. Reservations had to be made at least two days __11__, and there were limited seats available.* \% ?( O" m0 w4 J2 Y
Three weeks after MaxSaver rates were __12__, American Airlines announced plans to raise its discount fares and require 30-day __13__ purchasing for its lowest fares. It felt it could not continue at the rates in effect. However, just 10 days __14__, Ameriacn Airlines had to revise its plan. Texas Air refused to abandon the MaxSaver fare; it even extended the program into the busy summer season. Competitors went along and the price war raged on, __15__ an executive’s comment that "nobody’s cost structure can survive MaxSavers."/ y. X6 b* A0 v t- h+ @
1. A) little) x( L; q1 N% Y* i( g% f9 Z
B) slowly
& R4 s1 A, U" O _, F3 K! ] C) quick
9 O% O! B' G3 A1 K) S" U! k8 T3 E D) radically7 S9 L# |* h: T; I" Q# E* [* o5 h" H
2. A) burst
/ `4 E+ n" F6 y9 z+ g3 }9 C B) explode; x7 M" K/ V4 p0 z
C) opened
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D) disappeared |