Should Orbitz Be Grounded Before Takeoff? - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Should Orbitz Be Grounded Before Takeoff?

Allowing the five major airlines to collaborate on online travel site Orbitz.com will cost consumers $3.2 billion over the next seven to 10 years, charges a recent study by the Interactive Travel Services Association, a group of online travel sites that will compete with Orbitz.

The study's author, MIT professor of economics Jerry Hausman, predicts that Orbitz "will allow its airline-owners to jointly agree on anticompetitive provisions that they could not enforce individually." Hausman says the result will be chilled competition, reduced innovation, and harm to low-fare airlines.

"I'm not sure what the ultimate goal of Orbitz is," says ITSA executive director Antonella Pianalto. "But we are concerned about the clauses that give it exclusive fares that will not be available anywhere else." Pianalto is also skeptical of a most-favored notion clause that says the participating airlines--American, Continental, Delta, Northwest and United--must make available to Orbitz any deals they cut elsewhere.

Meanwhile, inspector general Ken Meade of the U.S. Department of Transportation, which is reviewing Orbitz, has been quoted saying a decision on whether the site is anticompetitive is close. The site, which is in beta tests, is scheduled to debut in June.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
News
How GIS Data Can Help Fix Vaccine Distribution
Jessica Davis, Senior Editor, Enterprise Apps,  2/17/2021
Commentary
Graph-Based AI Enters the Enterprise Mainstream
James Kobielus, Tech Analyst, Consultant and Author,  2/16/2021
Slideshows
11 Ways DevOps Is Evolving
Lisa Morgan, Freelance Writer,  2/18/2021
Register for InformationWeek Newsletters
Video
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll