ORLANDO The management of Orbitz, an airline owned travel website, was called before federal regulators this summer to answer charges that its new business model is a monopoly in the making. Despite this heightened scrutiny, Bear Stearns analyst Robert LaFleur does not believe Orbitz will be forced to close its doors even before they open. LaFleur made his comments at the eTravel World conference in Orlando.
Anti-competitive accusations have been made against by travel agents and other industry groups, which state that Orbitz will have a stranglehold on airline ticket supply. LaFleur does not believe these arguments hold much weight with regulators.
There is one area where LaFleur believes federal regulators may choose to step in. Orbitz plans to offer web-only fares that currently appear strictly on each airline s individual website, an option that is not available to other major travel sites. In addition, Travelocity and Expedia have a firm grip on the top two spots in the Internet travel space and LaFleur predicts that will not change. (9/22/00)