LYCOS RETRIEVER 
Orbitz: Airlines
built 267 days ago
Orbitz was the airline industry's response to the rise of online travel agencies such as Expedia and Travelocity, as well as a solution to the continued increase in Global Distribution System GDS fees. Continental Airlines, Delta Air Lines, Northwest Airlines, and United Airlines, subsequently joined by American Airlines, invested a combined $145 million to start the project in November 1999. It was code-named T2 — some claimed, meaning "Travelocity Terminator" – but adopted the brand name Orbitz when it commenced corporate operations as DUNC, LLC (the initials of its first four founding airlines) in February 2000. [1] The company began Beta testing early the next year, and Orbitz.com officially launched in June 2001.
Source:
There is considerable irony in the current attacks charging that Orbitz must be anti-competitive because it is the product of joint action by the airlines. Thirty years ago, when individual airlines attempted to obtain competitive advantage by creating the CRSs, the government imposed rules to forestall them, arguing that any unilateral advantage would be anti-competitive. The current rules have been extended annually since 1997 while the DOT reviews them to decide if substantive changes are needed. The rules will expire again on March 31, 2003.
Source:
Orbitz denies having exclusive deals with the airlines. Its execs say its advanced search capabilities are the reason for its edge. Searches on Orbitz often retrieve lower fares than even the ones provided by airlines' own sites.
Source:
Airline-backed online travel agency Orbitz has finally launched. Focusing on low prices misses the real story -- a promise of better customer service and Orbitz's potential to become travel's next major global distribution system.
Source:
In August 2003, Orbitz filed to do an initial public offering (IPO). Businessweek, commenting on the proposed IPO, noted that Orbitz lost $5.3 million in the first half of 2003 on revenue of $107 million; that airlines would control the board of directors of Orbitz even after the IPO; and that much of Orbitz's business model was structured to benefit the airlines at the cost of (future) shareholders. [2] In November, Orbitz filed paperwork to sell shares at between $22 and $24 each. [3]. The company went public on December 18, 2003 at a price per share of $26. [4][5] After the IPO, the airlines held 70% of the outstanding stock and over 90% of the voting power.
Source:
Orbitz gained by the postponement of its initial public offering (IPO). The IPO had originally been expected to take in $125 million when set for May 2002. In the next year and a half, the company's numbers grew and it was coming closer to profitability. Skeptics blasted Orbitz's lack of consistent profits, and noted that the commission rates the airlines paid were scheduled to drop to 37 percent of their value by 2006.
Source:
MORE ABOUT
Airlines