WASHINGTON — Five major airlines have won U.S. Transportation Department approval to go ahead with their own Internet travel site.
Transportation officials said there was no evidence that Orbitz would reduce competition or violate antitrust laws. The site — owned by American, Continental, Delta, Northwest and United — is still being reviewed by the Justice Department, but Orbitz President Jeff Katz said he didn’t expect any problems now that DOT has given the venture the green light.
“In the end, consumers are the real winners when there’s more competition,” Katz said Monday. “Our low-cost structure will ensure there is better information and lower fares in the marketplace.”
Other online travel agencies questioned whether Orbitz would have an advantage over its competitors, such as being able to offer lower fares on its five airlines than anyone else.
The Interactive Travel Services Association, which represents such competing Web sites as Travelocity.com and Lowestfare.com, said it was disappointed with the DOT decision.
ITSA Executive Director Antonella Pianalto said the group wanted DOT or the Department of Justice to “correct the anticompetitive flaws in Orbitz’s exclusive access to discounted Internet fares before its launch.”
But Transportation Department officials said Orbitz has not required airlines to give it exclusive rights to certain fares, nor stopped the airlines from supplying similar fares to other travel Web sites.
DOT officials said they would review Orbitz once it begins its full operation in June, and will respond if they feel the site hinders competition. In addition, Orbitz was told to provide a progress report after six months.
Orbitz: http://www.orbitz.com
Interactive Travel Services Association:
http://www.interactivetravel.org
Department of Transportation: http://www.dot.gov
