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.
- X2 t9 W8 z4 q1 n9 c- P: J 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.
# R8 B9 r" \- S/ w! R 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.; |( z( D5 p1 a" Q9 L9 K5 V% x
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."
$ D E! Y/ c9 E5 |, _4 k 1. A) little
! I! V' e; o4 d# a8 E" Q) E& e B) slowly
; G% L# j" w: {) D C) quick
/ {7 `& S2 h9 C0 ~+ H D) radically' `$ q' |4 G- Q" k/ J% D' N1 X# |
2. A) burst* T; V7 v) \! U" q- j
B) explode# L8 D6 |$ `0 R5 C! w9 X
C) opened
$ E$ y/ s! b1 a' l ^# u
: F- u0 k$ |& i$ O D) disappeared |