THE PROBLEM

Record oil prices are causing havoc in energy-intensive industries. United Airlines last week announced it would slash more than a fifth of its aircraft fleet and cut 55,000 jobs. Carmakers face falling sales of gas-guzzling sport-utility vehicles and pick-up trucks; General Motors last week announced plans to close four SUV and truck plants in the US, Canada and Mexico. Other sectors in pain include steelmakers, hauliers and logistics groups. Managers in fuel-hungry businesses face a tough decision: whether to respond immediately with a transformed business model, or to ride out the period in hope of an eventual easing in prices and the prospect of increased market share when the worst is over. How to decide?