ECONOMICS REPORT - Changes in the Airline Industry

ECONOMICS REPORT - Changes in the Airline Industry
By Mario Ritter

Broadcast: Friday, October 01, 2004

This is Gwen Outen with the VOA Special English Economics Report.

Many airline companies are finding it difficult to make a profit. The International Air Transport Association says it expects the industry to lose up to four thousand million dollars this year. Yet air travel continues to increase. So what is the problem?

Fuel prices are high. But many airlines are finding that their way of doing business is also too costly¹.

U.S. Airways², for example, wants a Bankruptcy³ Court judge to order temporary pay reductions for many of its workers. The company also plans to cut pay for its managers by a reported twenty percent.

U.S. Airways is under protection from its creditors⁴ for the second time in two years. It says it could go out of business in February. U.S. Airways is the seventh largest airline in the United States.

The third largest, Delta⁵, is trying to avoid bankruptcy. Delta Airlines announced a ten percent pay cut for its top officials and some other workers.

This week, Delta reached an agreement with the labor⁶ union for its pilots. A lot of them have taken early retirements⁸. To avoid a shortage, the deal permits newly retired⁹ pilots to return to work. In return, Delta agreed not to take any immediate¹⁰ steps to cancel the retirement⁷ plan for its pilots.

United Airlines, the second largest carrier, is under bankruptcy protection. It wants to end its pension programs and replace them to save money. But the existing plans are owed thousands of millions of dollars which United wants the government to pay. How much the plans are owed is in dispute.

Not all airlines are in trouble. Low-cost airlines like Southwest and JetBlue remain profitable. These smaller airlines provide limited services and usually do not serve meals on their flights.

Some major airlines have tried to raise their prices in recent months. American Airlines, the world's largest carrier, started such an effort last week. But the low-price competition has made it difficult for traditional airlines to charge more.

Airlines in the United States are not the only ones facing such competition. The Italian airline Alitalia is close to seeking protection from its creditors. Alitalia has lost market share to companies like Ryanair of Ireland which offer low-cost travel in Italy.

Some people believe that airlines should combine their businesses to cut costs. But some costs cannot be controlled, like oil prices which reached fifty dollars a barrel this week.

This VOA Special English Economics Report was written by Mario Ritter. This is Gwen Outen.

1 costly   

adj.昂贵的，价值高的，豪华的

参考例句：

• It must be very costly to keep up a house like this.维修这么一幢房子一定很昂贵。
• This dictionary is very useful,only it is a bit costly.这本词典很有用，左不过贵了些。

2 AIRWAYS   

航空公司

参考例句：

• The giant jets that increasingly dominate the world's airways. 越来越称雄于世界航线的巨型喷气机。
• At one point the company bought from Nippon Airways a 727 jet. 有一次公司从日本航空公司买了一架727型喷气机。

3 bankruptcy   

n.破产；无偿付能力

参考例句：

• You will have to pull in if you want to escape bankruptcy.如果你想避免破产，就必须节省开支。
• His firm is just on thin ice of bankruptcy.他的商号正面临破产的危险。

4 creditors   

n.债权人，债主( creditor的名词复数 )

参考例句：

• They agreed to repay their creditors over a period of three years. 他们同意3年内向债主还清欠款。 来自《简明英汉词典》
• Creditors could obtain a writ for the arrest of their debtors. 债权人可以获得逮捕债务人的令状。 来自《简明英汉词典》

5 delta   

n.（流的）角洲

参考例句：

• He has been to the delta of the Nile.他曾去过尼罗河三角洲。
• The Nile divides at its mouth and forms a delta.尼罗河在河口分岔，形成了一个三角洲。

6 labor   

n.劳动，努力，工作，劳工；分娩；vi.劳动，努力，苦干；vt.详细分析；麻烦

参考例句：

• We are never late in satisfying him for his labor.我们从不延误付给他劳动报酬。
• He was completely spent after two weeks of hard labor.艰苦劳动两周后，他已经疲惫不堪了。

7 retirement   

n.退休，退职

参考例句：

• She wanted to enjoy her retirement without being beset by financial worries.她想享受退休生活而不必为金钱担忧。
• I have to put everything away for my retirement.我必须把一切都积蓄起来以便退休后用。

8 retirements   

退休( retirement的名词复数 )； 退职； 退役； 退休的实例

参考例句：

• We've had two retirements in our office this year. 今年我们办公室已有二人退休。
• Those may take the form of sackings redundancies, temporary layoffs or retirements. 这些形式有开除，作为编余人员，暂时解雇或退休。

9 retired   

adj.隐退的，退休的，退役的

参考例句：

• The old man retired to the country for rest.这位老人下乡休息去了。
• Many retired people take up gardening as a hobby.许多退休的人都以从事园艺为嗜好。

10 immediate   

adj.立即的；直接的，最接近的；紧靠的

参考例句：

• His immediate neighbours felt it their duty to call.他的近邻认为他们有责任去拜访。
• We declared ourselves for the immediate convocation of the meeting.我们主张立即召开这个会议。