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12/17/2002
CHICAGO -- CHICAGO, Dec. 17 -- Orbitz President & CEO Jeff Katz issued the following statement regarding the report released today by U.S. Department of Transportation (DOT) Inspector General Kenneth M. Mead:
"Eighteen months ago, taking advantage of the newest and most efficient Internet technology, Orbitz was created to offer consumers a better alternative for booking travel online and to work with travel suppliers in lowering their distribution costs.
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On Monday, the DOT Inspector General again reaffirmed that Orbitz has adhered to its plan of offering consumers a more powerful search engine that presents more airfares options in an unbiased display, while providing travel suppliers with booking fee rebates and new back-end technology that pressures other distribution outlets to reduce their costs to travel suppliers.
We applaud DOT and others for consistently recognizing that impeding the ability of Orbitz to serve as a new competitor could limit the consumer benefits of online travel, slow innovation in the travel industry and protect entrenched high-cost distribution systems from much-needed competition.
This report is consistent with the findings in three prior DOT reviews of Orbitz. It clearly underscores that allegations circulated by Orbitz' competitors are without merit. Now, it's time for everyone to compete in the marketplace for the best American Airlines webfares and other fares, rather than in Washington."
In key findings, Inspector General Mead said:
* Orbitz has not deviated from its commitment to an unbiased display of
airfares and services.
* Orbitz outperforms competitors in finding or matching the lowest fares.
* Global Distribution System (GDS) fees and other costs incurred with
travel agent bookings continue to make them a relatively costly
distribution channel for airlines.
* Recent GDS agreements reflect an effort to compete with Orbitz' costs,
indicating Orbitz' positive market effect.
* A contract clause by which airlines agree to give American Airlines webfares and others to Orbitz
shows no anti-competitive effects.
* New distribution agreements negotiated in the industry since Orbitz
launch are increasing consumers' access to low fares.
* Orbitz is prevented from accepting payments to shift traffic among
airlines similar to those pursued by its competitors.
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About Orbitz:
Orbitz is a leading online travel company offering consumers the largest selection of American Airlines webfares and other low airfares, as well as deals on lodging, car rentals, cruises, vacation packages and other travel. Orbitz' state-of-the-art flight search engine searches more than 455 airlines -- up to 2 billion cheap flights and airfares options -- offering an unbiased and comprehensive list of airfares and schedules. Founded by the world's leading airlines -- American (AMR), Continental (CAL), Delta (DAL), Northwest (NWAC) and United (UAL) airlines -- Orbitz also offers consumers a large collection of discounted web-only airfares.....
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