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
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
News
Think Like a Chief Innovation Officer and Get Work Done
Joao-Pierre S. Ruth, Senior Writer,  10/13/2020
Slideshows
10 Trends Accelerating Edge Computing
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/8/2020
News
Northwestern Mutual CIO: Riding Out the Pandemic
Jessica Davis, Senior Editor, Enterprise Apps,  10/7/2020
Register for InformationWeek Newsletters
Video
Current Issue
[Special Report] Edge Computing: An IT Platform for the New Enterprise
Edge computing is poised to make a major splash within the next generation of corporate IT architectures. Here's what you need to know!
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